Correlation Between Wonbang Tech and CJ Seafood
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech 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 Wonbang Tech and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and CJ Seafood Corp, you can compare the effects of market volatilities on Wonbang Tech 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 Wonbang Tech with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and CJ Seafood.
Diversification Opportunities for Wonbang Tech and CJ Seafood
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wonbang and 011150 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co 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 Wonbang Tech 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 Wonbang Tech Co 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 Wonbang Tech i.e., Wonbang Tech and CJ Seafood go up and down completely randomly.
Pair Corralation between Wonbang Tech and CJ Seafood
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the CJ Seafood. In addition to that, Wonbang Tech is 1.16 times more volatile than CJ Seafood Corp. It trades about -0.03 of its total potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.03 per unit of volatility. If you would invest 270,000 in CJ Seafood Corp on September 26, 2024 and sell it today you would earn a total of 47,000 from holding CJ Seafood Corp or generate 17.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Wonbang Tech Co vs. CJ Seafood Corp
Performance |
Timeline |
Wonbang Tech |
CJ Seafood Corp |
Wonbang Tech and CJ Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wonbang Tech and CJ Seafood
The main advantage of trading using opposite Wonbang Tech and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech 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.Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. LG Energy Solution | Wonbang Tech vs. SK Hynix |
CJ Seafood vs. AptaBio Therapeutics | CJ Seafood vs. Wonbang Tech Co | CJ Seafood vs. Busan Industrial Co | CJ Seafood vs. Busan Ind |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |