Correlation Between Incar Financial and Jeju Semiconductor
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Jeju Semiconductor 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 Incar Financial and Jeju Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Jeju Semiconductor Corp, you can compare the effects of market volatilities on Incar Financial and Jeju Semiconductor 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 Incar Financial with a short position of Jeju Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Jeju Semiconductor.
Diversification Opportunities for Incar Financial and Jeju Semiconductor
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Incar and Jeju is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Jeju Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Semiconductor Corp and Incar 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 Incar Financial Service are associated (or correlated) with Jeju Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Semiconductor Corp has no effect on the direction of Incar Financial i.e., Incar Financial and Jeju Semiconductor go up and down completely randomly.
Pair Corralation between Incar Financial and Jeju Semiconductor
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 0.65 times more return on investment than Jeju Semiconductor. However, Incar Financial Service is 1.54 times less risky than Jeju Semiconductor. It trades about 0.11 of its potential returns per unit of risk. Jeju Semiconductor Corp is currently generating about 0.06 per unit of risk. If you would invest 185,807 in Incar Financial Service on January 16, 2025 and sell it today you would earn a total of 586,193 from holding Incar Financial Service or generate 315.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.91% |
| Values | Daily Returns |
Incar Financial Service vs. Jeju Semiconductor Corp
Performance |
| Timeline |
| Incar Financial Service |
| Jeju Semiconductor Corp |
Incar Financial and Jeju Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Jeju Semiconductor
The main advantage of trading using opposite Incar Financial and Jeju Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Jeju Semiconductor 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 Jeju Semiconductor will offset losses from the drop in Jeju Semiconductor's long position.| Incar Financial vs. iNtRON Biotechnology | Incar Financial vs. Songwon Industrial Co | Incar Financial vs. Dongkook Industrial Co | Incar Financial vs. Hanmi Semiconductor Co |
| Jeju Semiconductor vs. Hanshin Construction Co | Jeju Semiconductor vs. Hanwha Life Insurance | Jeju Semiconductor vs. Samlip General Foods | Jeju Semiconductor vs. Semyung Electric Machinery |
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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