Correlation Between Jb Financial and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Grand Korea 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 Grand Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Grand Korea Leisure, you can compare the effects of market volatilities on Jb Financial and Grand Korea 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 Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Grand Korea.
Diversification Opportunities for Jb Financial and Grand Korea
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 175330 and Grand is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure 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 Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Jb Financial i.e., Jb Financial and Grand Korea go up and down completely randomly.
Pair Corralation between Jb Financial and Grand Korea
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.01 times more return on investment than Grand Korea. However, Jb Financial is 1.01 times more volatile than Grand Korea Leisure. It trades about 0.23 of its potential returns per unit of risk. Grand Korea Leisure is currently generating about 0.06 per unit of risk. If you would invest 1,791,000 in Jb Financial on September 1, 2024 and sell it today you would earn a total of 177,000 from holding Jb Financial or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Grand Korea Leisure
Performance |
| Timeline |
| Jb Financial |
| Grand Korea Leisure |
Jb Financial and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Grand Korea
The main advantage of trading using opposite Jb Financial and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group |
| Grand Korea vs. Cots Technology Co | Grand Korea vs. RFTech Co | Grand Korea vs. Shinhan Inverse Silver | Grand Korea vs. Vitzro Tech 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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