Correlation Between QUALITAS SEMICONDUCTOR and CJ Seafood

Can any of the company-specific risk be diversified away by investing in both QUALITAS SEMICONDUCTOR 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 QUALITAS SEMICONDUCTOR and CJ Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QUALITAS SEMICONDUCTOR LTD and CJ Seafood Corp, you can compare the effects of market volatilities on QUALITAS SEMICONDUCTOR 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 QUALITAS SEMICONDUCTOR with a short position of CJ Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUALITAS SEMICONDUCTOR and CJ Seafood.

Diversification Opportunities for QUALITAS SEMICONDUCTOR and CJ Seafood

0.57

Correlation Coefficient

QUALITAS SEMICONDUCTOR  CJ Seafood

Very weak diversification

The 3 months correlation between QUALITAS and 011150 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding QUALITAS SEMICONDUCTOR LTD 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 QUALITAS SEMICONDUCTOR 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 QUALITAS SEMICONDUCTOR LTD 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 QUALITAS SEMICONDUCTOR i.e., QUALITAS SEMICONDUCTOR and CJ Seafood go up and down completely randomly.

Pair Corralation between QUALITAS SEMICONDUCTOR and CJ Seafood

Assuming the 90 days trading horizon QUALITAS SEMICONDUCTOR LTD is expected to generate 2.25 times more return on investment than CJ Seafood. However, QUALITAS SEMICONDUCTOR is 2.25 times more volatile than CJ Seafood Corp. It trades about 0.23 of its potential returns per unit of risk. CJ Seafood Corp is currently generating about 0.07 per unit of risk. If you would invest  660,000  in QUALITAS SEMICONDUCTOR LTD on December 2, 2024 and sell it today you would earn a total of  672,000  from holding QUALITAS SEMICONDUCTOR LTD or generate 101.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

QUALITAS SEMICONDUCTOR LTD  vs.  CJ Seafood Corp

QUALITAS SEMICONDUCTOR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in QUALITAS SEMICONDUCTOR LTD are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, QUALITAS SEMICONDUCTOR sustained solid returns over the last few months and may actually be approaching a breakup point.

CJ Seafood Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CJ Seafood Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CJ Seafood may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with QUALITAS SEMICONDUCTOR and CJ Seafood

The main advantage of trading using opposite QUALITAS SEMICONDUCTOR and CJ Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUALITAS SEMICONDUCTOR 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.

The idea behind QUALITAS SEMICONDUCTOR LTD and CJ Seafood Corp 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.