Correlation Between Jb Financial and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Sungchang Autotech 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 Sungchang Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Sungchang Autotech Co, you can compare the effects of market volatilities on Jb Financial and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Sungchang Autotech.
Diversification Opportunities for Jb Financial and Sungchang Autotech
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 175330 and Sungchang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Jb Financial i.e., Jb Financial and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Jb Financial and Sungchang Autotech
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the Sungchang Autotech. In addition to that, Jb Financial is 1.37 times more volatile than Sungchang Autotech Co. It trades about -0.39 of its total potential returns per unit of risk. Sungchang Autotech Co is currently generating about 0.25 per unit of volatility. If you would invest 353,007 in Sungchang Autotech Co on October 12, 2024 and sell it today you would earn a total of 17,993 from holding Sungchang Autotech Co or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Sungchang Autotech Co
Performance |
| Timeline |
| Jb Financial |
| Sungchang Autotech |
Jb Financial and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Sungchang Autotech
The main advantage of trading using opposite Jb Financial and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Jb Financial vs. Vissem Electronics Co | Jb Financial vs. Sungmoon Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Korea Electronic Certification |
| Sungchang Autotech vs. Jb Financial | Sungchang Autotech vs. Industrial Bank | Sungchang Autotech vs. Air Busan Co | Sungchang Autotech vs. Sejong Telecom |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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