Correlation Between DONGKUK COATED and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both DONGKUK COATED 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 DONGKUK COATED and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and CJ Seafood Corp, you can compare the effects of market volatilities on DONGKUK COATED 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 DONGKUK COATED with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK COATED and CJ Seafood.
Diversification Opportunities for DONGKUK COATED and CJ Seafood
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DONGKUK and 011150 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL 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 DONGKUK COATED 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 DONGKUK TED METAL 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 DONGKUK COATED i.e., DONGKUK COATED and CJ Seafood go up and down completely randomly.
Pair Corralation between DONGKUK COATED and CJ Seafood
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the CJ Seafood. But the stock apears to be less risky and, when comparing its historical volatility, DONGKUK TED METAL is 1.45 times less risky than CJ Seafood. The stock trades about -0.01 of its potential returns per unit of risk. The CJ Seafood Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 295,000 in CJ Seafood Corp on September 25, 2024 and sell it today you would earn a total of 9,000 from holding CJ Seafood Corp or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DONGKUK TED METAL vs. CJ Seafood Corp
Performance |
| Timeline |
| DONGKUK TED METAL |
| CJ Seafood Corp |
DONGKUK COATED and CJ Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK COATED and CJ Seafood
The main advantage of trading using opposite DONGKUK COATED and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK COATED 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.| DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. LG Energy Solution | DONGKUK COATED vs. SK Hynix |
| CJ Seafood vs. DONGKUK TED METAL | CJ Seafood vs. Jeong Moon Information | CJ Seafood vs. Inzi Display CoLtd | CJ Seafood vs. Sangsin Energy Display |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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