Correlation Between Jb Financial and SundayToz Corp
Can any of the company-specific risk be diversified away by investing in both Jb Financial and SundayToz Corp 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 SundayToz Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and SundayToz Corp, you can compare the effects of market volatilities on Jb Financial and SundayToz Corp 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 SundayToz Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and SundayToz Corp.
Diversification Opportunities for Jb Financial and SundayToz Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 175330 and SundayToz is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and SundayToz Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SundayToz Corp 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 SundayToz Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SundayToz Corp has no effect on the direction of Jb Financial i.e., Jb Financial and SundayToz Corp go up and down completely randomly.
Pair Corralation between Jb Financial and SundayToz Corp
Assuming the 90 days trading horizon Jb Financial is expected to under-perform the SundayToz Corp. But the stock apears to be less risky and, when comparing its historical volatility, Jb Financial is 1.68 times less risky than SundayToz Corp. The stock trades about -0.38 of its potential returns per unit of risk. The SundayToz Corp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 663,000 in SundayToz Corp on October 9, 2024 and sell it today you would earn a total of 78,000 from holding SundayToz Corp or generate 11.76% 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. SundayToz Corp
Performance |
| Timeline |
| Jb Financial |
| SundayToz Corp |
Jb Financial and SundayToz Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and SundayToz Corp
The main advantage of trading using opposite Jb Financial and SundayToz Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, SundayToz Corp 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 SundayToz Corp will offset losses from the drop in SundayToz Corp's long position.| Jb Financial vs. Hana Financial | Jb Financial vs. Woori Financial Group | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co |
| SundayToz Corp vs. Haesung Industrial Co | SundayToz Corp vs. Display Tech Co | SundayToz Corp vs. Namhwa Industrial Co | SundayToz Corp vs. Daiyang Metal 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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