Correlation Between PNC Technologies and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both PNC Technologies and CJ Seafood 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 PNC Technologies and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PNC Technologies co and CJ Seafood Corp, you can compare the effects of market volatilities on PNC Technologies and CJ Seafood 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 PNC Technologies with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of PNC Technologies and CJ Seafood.
Diversification Opportunities for PNC Technologies and CJ Seafood
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PNC and 011150 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding PNC Technologies co and CJ Seafood Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Seafood Corp and PNC Technologies 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 PNC Technologies co are associated (or correlated) with CJ Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Seafood Corp has no effect on the direction of PNC Technologies i.e., PNC Technologies and CJ Seafood go up and down completely randomly.
Pair Corralation between PNC Technologies and CJ Seafood
Assuming the 90 days trading horizon PNC Technologies co is expected to under-perform the CJ Seafood. In addition to that, PNC Technologies is 1.49 times more volatile than CJ Seafood Corp. It trades about -0.01 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.09 per unit of volatility. If you would invest 279,000 in CJ Seafood Corp on September 14, 2024 and sell it today you would earn a total of 11,000 from holding CJ Seafood Corp or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PNC Technologies co vs. CJ Seafood Corp
Performance |
| Timeline |
| PNC Technologies |
| CJ Seafood Corp |
PNC Technologies and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PNC Technologies and CJ Seafood
The main advantage of trading using opposite PNC Technologies and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PNC Technologies position performs unexpectedly, CJ Seafood 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 CJ Seafood will offset losses from the drop in CJ Seafood's long position.| PNC Technologies vs. Daejoo Electronic Materials | PNC Technologies vs. Interflex Co | PNC Technologies vs. Solution Advanced Technology | PNC Technologies vs. Busan Industrial Co |
| CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. Samsung Electronics Co | CJ Seafood vs. SK Hynix | CJ Seafood vs. POSCO Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |