Correlation Between Jb Financial and Digital Imaging
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Digital Imaging 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 Digital Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Digital Imaging Technology, you can compare the effects of market volatilities on Jb Financial and Digital Imaging 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 Digital Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Digital Imaging.
Diversification Opportunities for Jb Financial and Digital Imaging
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 175330 and Digital is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Digital Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Imaging Tech 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 Digital Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Imaging Tech has no effect on the direction of Jb Financial i.e., Jb Financial and Digital Imaging go up and down completely randomly.
Pair Corralation between Jb Financial and Digital Imaging
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.46 times less return on investment than Digital Imaging. But when comparing it to its historical volatility, Jb Financial is 2.44 times less risky than Digital Imaging. It trades about 0.1 of its potential returns per unit of risk. Digital Imaging Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 722,897 in Digital Imaging Technology on November 7, 2024 and sell it today you would earn a total of 886,103 from holding Digital Imaging Technology or generate 122.58% 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. Digital Imaging Technology
Performance |
| Timeline |
| Jb Financial |
| Digital Imaging Tech |
Jb Financial and Digital Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Digital Imaging
The main advantage of trading using opposite Jb Financial and Digital Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Digital Imaging 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 Digital Imaging will offset losses from the drop in Digital Imaging's long position.| Jb Financial vs. Miwon Chemicals Co | Jb Financial vs. Keyang Electric Machinery | Jb Financial vs. Kukdong Oil Chemicals | Jb Financial vs. Korea Air Svc |
| Digital Imaging vs. Tway Air Co | Digital Imaging vs. Daou Technology | Digital Imaging vs. Sejong Telecom | Digital Imaging vs. ECSTELECOM Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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