Correlation Between Humasis and JNK Heaters
Can any of the company-specific risk be diversified away by investing in both Humasis and JNK Heaters 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 Humasis and JNK Heaters into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and JNK Heaters Co, you can compare the effects of market volatilities on Humasis and JNK Heaters 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 Humasis with a short position of JNK Heaters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and JNK Heaters.
Diversification Opportunities for Humasis and JNK Heaters
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humasis and JNK is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and JNK Heaters Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JNK Heaters and Humasis 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 Humasis Co are associated (or correlated) with JNK Heaters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JNK Heaters has no effect on the direction of Humasis i.e., Humasis and JNK Heaters go up and down completely randomly.
Pair Corralation between Humasis and JNK Heaters
Assuming the 90 days trading horizon Humasis Co is expected to generate 2.17 times more return on investment than JNK Heaters. However, Humasis is 2.17 times more volatile than JNK Heaters Co. It trades about 0.13 of its potential returns per unit of risk. JNK Heaters Co is currently generating about -0.01 per unit of risk. If you would invest 159,300 in Humasis Co on September 14, 2024 and sell it today you would earn a total of 24,400 from holding Humasis Co or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. JNK Heaters Co
Performance |
| Timeline |
| Humasis |
| JNK Heaters |
Humasis and JNK Heaters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and JNK Heaters
The main advantage of trading using opposite Humasis and JNK Heaters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, JNK Heaters 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 JNK Heaters will offset losses from the drop in JNK Heaters' long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
| JNK Heaters vs. CJ Seafood Corp | JNK Heaters vs. Samlip General Foods | JNK Heaters vs. Haitai Confectionery Foods | JNK Heaters vs. Jeju Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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