Correlation Between Jb Financial and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Jb Financial and Anam Electronics 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 Jb Financial and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jb Financial and Anam Electronics Co, you can compare the effects of market volatilities on Jb Financial and Anam Electronics 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 Jb Financial with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jb Financial and Anam Electronics.
Diversification Opportunities for Jb Financial and Anam Electronics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 175330 and Anam is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jb Financial and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Jb Financial 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 Jb Financial are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Jb Financial i.e., Jb Financial and Anam Electronics go up and down completely randomly.
Pair Corralation between Jb Financial and Anam Electronics
Assuming the 90 days trading horizon Jb Financial is expected to generate 0.96 times more return on investment than Anam Electronics. However, Jb Financial is 1.04 times less risky than Anam Electronics. It trades about 0.26 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 1,424,360 in Jb Financial on August 31, 2024 and sell it today you would earn a total of 569,640 from holding Jb Financial or generate 39.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jb Financial vs. Anam Electronics Co
Performance |
Timeline |
Jb Financial |
Anam Electronics |
Jb Financial and Anam Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jb Financial and Anam Electronics
The main advantage of trading using opposite Jb Financial and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jb Financial position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. KB Financial Group | Jb Financial vs. Shinhan Financial Group |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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