Correlation Between Jb Financial and Poongsan
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Poongsan 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 Poongsan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Poongsan, you can compare the effects of market volatilities on Jb Financial and Poongsan 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 Poongsan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Poongsan.
Diversification Opportunities for Jb Financial and Poongsan
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between 175330 and Poongsan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Poongsan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poongsan 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 Poongsan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poongsan has no effect on the direction of Jb Financial i.e., Jb Financial and Poongsan go up and down completely randomly.
Pair Corralation between Jb Financial and Poongsan
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.75 times more return on investment than Poongsan. However, Jb Financial is 1.33 times less risky than Poongsan. It trades about 0.11 of its potential returns per unit of risk. Poongsan is currently generating about 0.05 per unit of risk. If you would invest 970,659 in Jb Financial on October 16, 2024 and sell it today you would earn a total of 755,341 from holding Jb Financial or generate 77.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Poongsan
Performance |
| Timeline |
| Jb Financial |
| Poongsan |
Jb Financial and Poongsan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Poongsan
The main advantage of trading using opposite Jb Financial and Poongsan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Poongsan 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 Poongsan will offset losses from the drop in Poongsan's long position.| Jb Financial vs. Seoul Electronics Telecom | Jb Financial vs. Automobile Pc | Jb Financial vs. Hankook Furniture Co | Jb Financial vs. Insung Information Co |
| Poongsan vs. KakaoBank Corp | Poongsan vs. LG Chemicals | Poongsan vs. Jb Financial | Poongsan vs. DB Financial Investment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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