Correlation Between Jeju Beer and CS BEARING
Can any of the company-specific risk be diversified away by investing in both Jeju Beer and CS BEARING 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 Jeju Beer and CS BEARING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeju Beer Co and CS BEARING CoLtd, you can compare the effects of market volatilities on Jeju Beer and CS BEARING 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 Jeju Beer with a short position of CS BEARING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeju Beer and CS BEARING.
Diversification Opportunities for Jeju Beer and CS BEARING
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeju and 297090 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jeju Beer Co and CS BEARING CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS BEARING CoLtd and Jeju Beer 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 Jeju Beer Co are associated (or correlated) with CS BEARING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS BEARING CoLtd has no effect on the direction of Jeju Beer i.e., Jeju Beer and CS BEARING go up and down completely randomly.
Pair Corralation between Jeju Beer and CS BEARING
Assuming the 90 days trading horizon Jeju Beer Co is expected to generate 1.11 times more return on investment than CS BEARING. However, Jeju Beer is 1.11 times more volatile than CS BEARING CoLtd. It trades about 0.03 of its potential returns per unit of risk. CS BEARING CoLtd is currently generating about 0.01 per unit of risk. If you would invest 293,500 in Jeju Beer Co on September 13, 2024 and sell it today you would earn a total of 1,500 from holding Jeju Beer Co or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeju Beer Co vs. CS BEARING CoLtd
Performance |
| Timeline |
| Jeju Beer |
| CS BEARING CoLtd |
Jeju Beer and CS BEARING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeju Beer and CS BEARING
The main advantage of trading using opposite Jeju Beer and CS BEARING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeju Beer position performs unexpectedly, CS BEARING 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 CS BEARING will offset losses from the drop in CS BEARING's long position.| Jeju Beer vs. AptaBio Therapeutics | Jeju Beer vs. Daewoo SBI SPAC | Jeju Beer vs. Dream Security co | Jeju Beer vs. Microfriend |
| CS BEARING vs. Jeju Beer Co | CS BEARING vs. Bohae Brewery | CS BEARING vs. Guyoung Technology Co | CS BEARING vs. Woori Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |