Correlation Between Jb Financial and Hana Technology
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Hana Technology 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 Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Hana Technology Co, you can compare the effects of market volatilities on Jb Financial and Hana Technology 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 Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Hana Technology.
Diversification Opportunities for Jb Financial and Hana Technology
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 175330 and Hana is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology 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 Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of Jb Financial i.e., Jb Financial and Hana Technology go up and down completely randomly.
Pair Corralation between Jb Financial and Hana Technology
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.54 times more return on investment than Hana Technology. However, Jb Financial is 1.86 times less risky than Hana Technology. It trades about 0.14 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.17 per unit of risk. If you would invest 1,307,409 in Jb Financial on September 3, 2024 and sell it today you would earn a total of 660,591 from holding Jb Financial or generate 50.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jb Financial vs. Hana Technology Co
Performance |
| Timeline |
| Jb Financial |
| Hana Technology |
Jb Financial and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jb Financial and Hana Technology
The main advantage of trading using opposite Jb Financial and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Hana Technology 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 Hana Technology will offset losses from the drop in Hana Technology's long position.| Jb Financial vs. Tway Air Co | Jb Financial vs. Youl Chon Chemical | Jb Financial vs. Jin Air Co | Jb Financial vs. Netmarble Games Corp |
| Hana Technology vs. Seoam Machinery Industry | Hana Technology vs. LG Chemicals | Hana Technology vs. Hanshin Construction Co | Hana Technology vs. GS Engineering Construction |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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