Correlation Between JUSUNG ENGINEERING and EASY HOLDINGS

Can any of the company-specific risk be diversified away by investing in both JUSUNG ENGINEERING and EASY HOLDINGS 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 JUSUNG ENGINEERING and EASY HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JUSUNG ENGINEERING Co and EASY HOLDINGS Co, you can compare the effects of market volatilities on JUSUNG ENGINEERING and EASY HOLDINGS 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 JUSUNG ENGINEERING with a short position of EASY HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of JUSUNG ENGINEERING and EASY HOLDINGS.

Diversification Opportunities for JUSUNG ENGINEERING and EASY HOLDINGS

-0.19

Correlation Coefficient

JUSUNG ENGINEERING  EASY HOLDINGS

Good diversification

The 3 months correlation between JUSUNG and EASY is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding JUSUNG ENGINEERING Co and EASY HOLDINGS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EASY HOLDINGS and JUSUNG ENGINEERING 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 JUSUNG ENGINEERING Co are associated (or correlated) with EASY HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EASY HOLDINGS has no effect on the direction of JUSUNG ENGINEERING i.e., JUSUNG ENGINEERING and EASY HOLDINGS go up and down completely randomly.

Pair Corralation between JUSUNG ENGINEERING and EASY HOLDINGS

If you would invest  1,079,842  in JUSUNG ENGINEERING Co on September 14, 2024 and sell it today you would earn a total of  1,885,158  from holding JUSUNG ENGINEERING Co or generate 174.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

JUSUNG ENGINEERING Co  vs.  EASY HOLDINGS Co

JUSUNG ENGINEERING

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JUSUNG ENGINEERING Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, JUSUNG ENGINEERING sustained solid returns over the last few months and may actually be approaching a breakup point.

EASY HOLDINGS

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days EASY HOLDINGS Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, EASY HOLDINGS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with JUSUNG ENGINEERING and EASY HOLDINGS

The main advantage of trading using opposite JUSUNG ENGINEERING and EASY HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JUSUNG ENGINEERING position performs unexpectedly, EASY HOLDINGS 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 EASY HOLDINGS will offset losses from the drop in EASY HOLDINGS's long position.

The idea behind JUSUNG ENGINEERING Co and EASY HOLDINGS Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.