Correlation Between Jahwa Electron and Daehan Synthetic
Can any of the company-specific risk be diversified away by investing in both Jahwa Electron and Daehan Synthetic 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 Jahwa Electron and Daehan Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jahwa Electron and Daehan Synthetic Fiber, you can compare the effects of market volatilities on Jahwa Electron and Daehan Synthetic 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 Jahwa Electron with a short position of Daehan Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jahwa Electron and Daehan Synthetic.
Diversification Opportunities for Jahwa Electron and Daehan Synthetic
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jahwa and Daehan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jahwa Electron and Daehan Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Synthetic Fiber and Jahwa Electron 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 Jahwa Electron are associated (or correlated) with Daehan Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Synthetic Fiber has no effect on the direction of Jahwa Electron i.e., Jahwa Electron and Daehan Synthetic go up and down completely randomly.
Pair Corralation between Jahwa Electron and Daehan Synthetic
Assuming the 90 days trading horizon Jahwa Electron is expected to under-perform the Daehan Synthetic. In addition to that, Jahwa Electron is 1.93 times more volatile than Daehan Synthetic Fiber. It trades about -0.26 of its total potential returns per unit of risk. Daehan Synthetic Fiber is currently generating about 0.21 per unit of volatility. If you would invest 9,850,000 in Daehan Synthetic Fiber on September 5, 2024 and sell it today you would earn a total of 1,750,000 from holding Daehan Synthetic Fiber or generate 17.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jahwa Electron vs. Daehan Synthetic Fiber
Performance |
Timeline |
Jahwa Electron |
Daehan Synthetic Fiber |
Jahwa Electron and Daehan Synthetic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jahwa Electron and Daehan Synthetic
The main advantage of trading using opposite Jahwa Electron and Daehan Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jahwa Electron position performs unexpectedly, Daehan Synthetic 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 Daehan Synthetic will offset losses from the drop in Daehan Synthetic's long position.Jahwa Electron vs. Nable Communications | Jahwa Electron vs. GS Retail Co | Jahwa Electron vs. Formetal Co | Jahwa Electron vs. Mobileleader CoLtd |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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