Correlation Between Jb Financial and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Jeju Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jb Financial and Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Jeju Semiconductor Corp, you can compare the effects of market volatilities on Jb Financial and Jeju Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jb Financial with a short position of Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Jeju Semiconductor.
Diversification Opportunities for Jb Financial and Jeju Semiconductor
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and Jeju is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp and Jb Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jb Financial are associated (or correlated) with Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Jb Financial i.e., Jb Financial and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Jb Financial and Jeju Semiconductor
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.51 times less return on investment than Jeju Semiconductor. But when comparing it to its historical volatility, Jb Financial is 2.12 times less risky than Jeju Semiconductor. It trades about 0.08 of its potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 395,500 in Jeju Semiconductor Corp on September 28, 2024 and sell it today you would earn a total of 490,500 from holding Jeju Semiconductor Corp or generate 124.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jb Financial vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| Jb Financial |
| Jeju Semiconductor Corp |
Jb Financial and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Jeju Semiconductor
The main advantage of trading using opposite Jb Financial and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Jeju Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Jb Financial vs. KB Financial Group | Jb Financial vs. Hyundai Motor | Jb Financial vs. Hyundai Motor Co | Jb Financial vs. Hyundai Motor Co |
| Jeju Semiconductor vs. Jb Financial | Jeju Semiconductor vs. Incar Financial Service | Jeju Semiconductor vs. PLAYWITH | Jeju Semiconductor vs. Dgb Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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