Correlation Between Moonbae Steel and Ilji Technology
Can any of the company-specific risk be diversified away by investing in both Moonbae Steel and Ilji Technology 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 Moonbae Steel and Ilji Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moonbae Steel and Ilji Technology Co, you can compare the effects of market volatilities on Moonbae Steel and Ilji Technology 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 Moonbae Steel with a short position of Ilji Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moonbae Steel and Ilji Technology.
Diversification Opportunities for Moonbae Steel and Ilji Technology
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Moonbae and Ilji is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Moonbae Steel and Ilji Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ilji Technology and Moonbae Steel 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 Moonbae Steel are associated (or correlated) with Ilji Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ilji Technology has no effect on the direction of Moonbae Steel i.e., Moonbae Steel and Ilji Technology go up and down completely randomly.
Pair Corralation between Moonbae Steel and Ilji Technology
Assuming the 90 days trading horizon Moonbae Steel is expected to under-perform the Ilji Technology. But the stock apears to be less risky and, when comparing its historical volatility, Moonbae Steel is 1.55 times less risky than Ilji Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Ilji Technology Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 271,237 in Ilji Technology Co on November 7, 2024 and sell it today you would earn a total of 117,763 from holding Ilji Technology Co or generate 43.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moonbae Steel vs. Ilji Technology Co
Performance |
| Timeline |
| Moonbae Steel |
| Ilji Technology |
Moonbae Steel and Ilji Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moonbae Steel and Ilji Technology
The main advantage of trading using opposite Moonbae Steel and Ilji Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moonbae Steel position performs unexpectedly, Ilji Technology 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 Ilji Technology will offset losses from the drop in Ilji Technology's long position.| Moonbae Steel vs. Lotte Non Life Insurance | Moonbae Steel vs. Woori Technology Investment | Moonbae Steel vs. DSC Investment | Moonbae Steel vs. Hanjin Transportation Co |
| Ilji Technology vs. Youngsin Metal Industrial | Ilji Technology vs. Korea Investment Holdings | Ilji Technology vs. Foodnamoo | Ilji Technology vs. Woori Technology Investment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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