Correlation Between Hurum and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Hurum 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 Hurum and Jahwa Electron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and Jahwa Electron, you can compare the effects of market volatilities on Hurum 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 Hurum with a short position of Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and Jahwa Electron.
Diversification Opportunities for Hurum and Jahwa Electron
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hurum and Jahwa is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hurum Co and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron and Hurum 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 Hurum Co 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 Hurum i.e., Hurum and Jahwa Electron go up and down completely randomly.
Pair Corralation between Hurum and Jahwa Electron
Assuming the 90 days trading horizon Hurum Co is expected to generate 0.86 times more return on investment than Jahwa Electron. However, Hurum Co is 1.16 times less risky than Jahwa Electron. It trades about -0.03 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.03 per unit of risk. If you would invest 114,000 in Hurum Co on September 3, 2024 and sell it today you would lose (43,500) from holding Hurum Co or give up 38.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurum Co vs. Jahwa Electron
Performance |
| Timeline |
| Hurum |
| Jahwa Electron |
Hurum and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and Jahwa Electron
The main advantage of trading using opposite Hurum and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum 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.| Hurum vs. Samhwa Paint Industrial | Hurum vs. EV Advanced Material | Hurum vs. Haesung Industrial Co | Hurum vs. Hyundai Industrial Co |
| Jahwa Electron vs. Nam Hwa Construction | Jahwa Electron vs. Woorim Machinery Co | Jahwa Electron vs. GS Engineering Construction | Jahwa Electron vs. AeroSpace Technology of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |