Correlation Between Jb Financial and Fine Besteel
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Fine Besteel 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 Fine Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Fine Besteel Co, you can compare the effects of market volatilities on Jb Financial and Fine Besteel 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 Fine Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Fine Besteel.
Diversification Opportunities for Jb Financial and Fine Besteel
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 175330 and Fine is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Fine Besteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Besteel 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 Fine Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Besteel has no effect on the direction of Jb Financial i.e., Jb Financial and Fine Besteel go up and down completely randomly.
Pair Corralation between Jb Financial and Fine Besteel
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.8 times more return on investment than Fine Besteel. However, Jb Financial is 1.25 times less risky than Fine Besteel. It trades about 0.08 of its potential returns per unit of risk. Fine Besteel Co is currently generating about -0.03 per unit of risk. If you would invest 1,344,876 in Jb Financial on October 13, 2024 and sell it today you would earn a total of 344,124 from holding Jb Financial or generate 25.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Fine Besteel Co
Performance |
| Timeline |
| Jb Financial |
| Fine Besteel |
Jb Financial and Fine Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Fine Besteel
The main advantage of trading using opposite Jb Financial and Fine Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Fine Besteel 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 Fine Besteel will offset losses from the drop in Fine Besteel's long position.| Jb Financial vs. ChipsMedia | Jb Financial vs. Alton Sports CoLtd | Jb Financial vs. Kukil Metal Co | Jb Financial vs. MediaZen |
| Fine Besteel vs. Jb Financial | Fine Besteel vs. SeAH Besteel Corp | Fine Besteel vs. Incar Financial Service | Fine Besteel vs. Han Kook Steel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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