Correlation Between JETEMA and HLB Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both JETEMA and HLB Pharmaceutical 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 JETEMA and HLB Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JETEMA Co and HLB Pharmaceutical Co, you can compare the effects of market volatilities on JETEMA and HLB Pharmaceutical 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 JETEMA with a short position of HLB Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JETEMA and HLB Pharmaceutical.
Diversification Opportunities for JETEMA and HLB Pharmaceutical
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JETEMA and HLB is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding JETEMA Co and HLB Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLB Pharmaceutical and JETEMA 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 JETEMA Co are associated (or correlated) with HLB Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLB Pharmaceutical has no effect on the direction of JETEMA i.e., JETEMA and HLB Pharmaceutical go up and down completely randomly.
Pair Corralation between JETEMA and HLB Pharmaceutical
Assuming the 90 days trading horizon JETEMA is expected to generate 80.0 times less return on investment than HLB Pharmaceutical. But when comparing it to its historical volatility, JETEMA Co is 1.89 times less risky than HLB Pharmaceutical. It trades about 0.0 of its potential returns per unit of risk. HLB Pharmaceutical Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,265,000 in HLB Pharmaceutical Co on August 28, 2024 and sell it today you would earn a total of 1,145,000 from holding HLB Pharmaceutical Co or generate 90.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JETEMA Co vs. HLB Pharmaceutical Co
Performance |
| Timeline |
| JETEMA |
| HLB Pharmaceutical |
JETEMA and HLB Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JETEMA and HLB Pharmaceutical
The main advantage of trading using opposite JETEMA and HLB Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JETEMA position performs unexpectedly, HLB Pharmaceutical 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 HLB Pharmaceutical will offset losses from the drop in HLB Pharmaceutical's long position.| JETEMA vs. Kolon Life Science | JETEMA vs. Aminologics CoLtd | JETEMA vs. Withuspharmaceutical CoLtd | JETEMA vs. High Tech Pharm |
| HLB Pharmaceutical vs. Kolon Life Science | HLB Pharmaceutical vs. Aminologics CoLtd | HLB Pharmaceutical vs. Withuspharmaceutical CoLtd | HLB Pharmaceutical vs. High Tech Pharm |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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