Correlation Between Jb Financial and Seojin Automotive
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Seojin Automotive 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 Seojin Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Seojin Automotive CoLtd, you can compare the effects of market volatilities on Jb Financial and Seojin Automotive 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 Seojin Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Seojin Automotive.
Diversification Opportunities for Jb Financial and Seojin Automotive
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 175330 and Seojin is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Seojin Automotive CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seojin Automotive CoLtd 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 Seojin Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seojin Automotive CoLtd has no effect on the direction of Jb Financial i.e., Jb Financial and Seojin Automotive go up and down completely randomly.
Pair Corralation between Jb Financial and Seojin Automotive
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.92 times more return on investment than Seojin Automotive. However, Jb Financial is 1.09 times less risky than Seojin Automotive. It trades about 0.13 of its potential returns per unit of risk. Seojin Automotive CoLtd is currently generating about -0.08 per unit of risk. If you would invest 798,550 in Jb Financial on September 12, 2024 and sell it today you would earn a total of 990,450 from holding Jb Financial or generate 124.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Seojin Automotive CoLtd
Performance |
| Timeline |
| Jb Financial |
| Seojin Automotive CoLtd |
Jb Financial and Seojin Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Seojin Automotive
The main advantage of trading using opposite Jb Financial and Seojin Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Seojin Automotive 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 Seojin Automotive will offset losses from the drop in Seojin Automotive's long position.| Jb Financial vs. Hansol Chemical Co | Jb Financial vs. Tae Kyung Chemical | Jb Financial vs. Genie Music | Jb Financial vs. Kukdo Chemical Co |
| Seojin Automotive vs. Innowireless Co | Seojin Automotive vs. Moonbae Steel | Seojin Automotive vs. Fine Besteel Co | Seojin Automotive vs. Jeil Steel Mfg |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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