Correlation Between InnoTherapy and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both InnoTherapy and Jahwa Electron 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 InnoTherapy and Jahwa Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnoTherapy and Jahwa Electron, you can compare the effects of market volatilities on InnoTherapy and Jahwa Electron 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 InnoTherapy with a short position of Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnoTherapy and Jahwa Electron.
Diversification Opportunities for InnoTherapy and Jahwa Electron
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between InnoTherapy and Jahwa is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding InnoTherapy and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron and InnoTherapy 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 InnoTherapy are associated (or correlated) with Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of InnoTherapy i.e., InnoTherapy and Jahwa Electron go up and down completely randomly.
Pair Corralation between InnoTherapy and Jahwa Electron
Assuming the 90 days trading horizon InnoTherapy is expected to generate 0.53 times more return on investment than Jahwa Electron. However, InnoTherapy is 1.9 times less risky than Jahwa Electron. It trades about 0.17 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.12 per unit of risk. If you would invest 807,000 in InnoTherapy on October 12, 2024 and sell it today you would earn a total of 106,000 from holding InnoTherapy or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InnoTherapy vs. Jahwa Electron
Performance |
| Timeline |
| InnoTherapy |
| Jahwa Electron |
InnoTherapy and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnoTherapy and Jahwa Electron
The main advantage of trading using opposite InnoTherapy and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnoTherapy position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| InnoTherapy vs. JETEMA Co | InnoTherapy vs. Daihan Pharmaceutical CoLtd | InnoTherapy vs. AnterogenCoLtd | InnoTherapy vs. High Tech Pharm |
| Jahwa Electron vs. KMH Hitech Co | Jahwa Electron vs. GemVaxKAEL CoLtd | Jahwa Electron vs. Bosung Power Technology | Jahwa Electron vs. Busan Industrial Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |