Correlation Between Jb Financial and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Jb Financial and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on Jb Financial and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and SEOJEON ELECTRIC.
Diversification Opportunities for Jb Financial and SEOJEON ELECTRIC
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 175330 and SEOJEON is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of Jb Financial i.e., Jb Financial and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between Jb Financial and SEOJEON ELECTRIC
Assuming the 90 days trading horizon Jb Financial is expected to generate 1.42 times less return on investment than SEOJEON ELECTRIC. But when comparing it to its historical volatility, Jb Financial is 2.09 times less risky than SEOJEON ELECTRIC. It trades about 0.38 of its potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 407,000 in SEOJEON ELECTRIC MACHINERY on October 24, 2024 and sell it today you would earn a total of 87,500 from holding SEOJEON ELECTRIC MACHINERY or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
| Jb Financial |
| SEOJEON ELECTRIC MAC |
Jb Financial and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and SEOJEON ELECTRIC
The main advantage of trading using opposite Jb Financial and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Naver | Jb Financial vs. SK Hynix |
| SEOJEON ELECTRIC vs. Samlip General Foods | SEOJEON ELECTRIC vs. Daiyang Metal Co | SEOJEON ELECTRIC vs. Seoul Food Industrial | SEOJEON ELECTRIC vs. Kukil 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 Stocks Directory module to find actively traded stocks across global markets.
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