Correlation Between Access Bio and CJ CheilJedang
Can any of the company-specific risk be diversified away by investing in both Access Bio and CJ CheilJedang 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 Access Bio and CJ CheilJedang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Bio and CJ CheilJedang Corp, you can compare the effects of market volatilities on Access Bio and CJ CheilJedang 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 Access Bio with a short position of CJ CheilJedang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Bio and CJ CheilJedang.
Diversification Opportunities for Access Bio and CJ CheilJedang
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Access and 097955 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Access Bio and CJ CheilJedang Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ CheilJedang Corp and Access Bio 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 Access Bio are associated (or correlated) with CJ CheilJedang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ CheilJedang Corp has no effect on the direction of Access Bio i.e., Access Bio and CJ CheilJedang go up and down completely randomly.
Pair Corralation between Access Bio and CJ CheilJedang
Assuming the 90 days trading horizon Access Bio is expected to under-perform the CJ CheilJedang. In addition to that, Access Bio is 3.31 times more volatile than CJ CheilJedang Corp. It trades about -0.03 of its total potential returns per unit of risk. CJ CheilJedang Corp is currently generating about -0.02 per unit of volatility. If you would invest 15,569,300 in CJ CheilJedang Corp on August 28, 2024 and sell it today you would lose (2,319,300) from holding CJ CheilJedang Corp or give up 14.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Bio vs. CJ CheilJedang Corp
Performance |
| Timeline |
| Access Bio |
| CJ CheilJedang Corp |
Access Bio and CJ CheilJedang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Bio and CJ CheilJedang
The main advantage of trading using opposite Access Bio and CJ CheilJedang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Bio position performs unexpectedly, CJ CheilJedang 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 CheilJedang will offset losses from the drop in CJ CheilJedang's long position.| Access Bio vs. Dongbang Transport Logistics | Access Bio vs. Taegu Broadcasting | Access Bio vs. Ssangyong Information Communication | Access Bio vs. Nable Communications |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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