Correlation Between Captivision Ordinary and ZJK Industrial

Can any of the company-specific risk be diversified away by investing in both Captivision Ordinary and ZJK Industrial 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 Captivision Ordinary and ZJK Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Captivision Ordinary Shares and ZJK Industrial Co,, you can compare the effects of market volatilities on Captivision Ordinary and ZJK Industrial 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 Captivision Ordinary with a short position of ZJK Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Captivision Ordinary and ZJK Industrial.

Diversification Opportunities for Captivision Ordinary and ZJK Industrial

-0.64

Correlation Coefficient

Captivision Ordinary  ZJK Industrial

Excellent diversification

The 3 months correlation between Captivision and ZJK is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Captivision Ordinary Shares and ZJK Industrial Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJK Industrial Co, and Captivision Ordinary 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 Captivision Ordinary Shares are associated (or correlated) with ZJK Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJK Industrial Co, has no effect on the direction of Captivision Ordinary i.e., Captivision Ordinary and ZJK Industrial go up and down completely randomly.

Pair Corralation between Captivision Ordinary and ZJK Industrial

Given the investment horizon of 90 days Captivision Ordinary Shares is expected to under-perform the ZJK Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Captivision Ordinary Shares is 2.98 times less risky than ZJK Industrial. The stock trades about -0.18 of its potential returns per unit of risk. The ZJK Industrial Co, is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  459.00  in ZJK Industrial Co, on October 20, 2024 and sell it today you would earn a total of  484.00  from holding ZJK Industrial Co, or generate 105.45% return on investment over 90 days.

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

Captivision Ordinary Shares  vs.  ZJK Industrial Co,

Captivision Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Captivision Ordinary Shares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ZJK Industrial Co,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ZJK Industrial Co, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking indicators, ZJK Industrial disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Captivision Ordinary and ZJK Industrial

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

The idea behind Captivision Ordinary Shares and ZJK Industrial 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.