Correlation Between Korea Alcohol and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Korea Alcohol and PJ Metal 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 Korea Alcohol and PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Alcohol Industrial and PJ Metal Co, you can compare the effects of market volatilities on Korea Alcohol and PJ Metal 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 Korea Alcohol with a short position of PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Alcohol and PJ Metal.
Diversification Opportunities for Korea Alcohol and PJ Metal
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korea and 128660 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Korea Alcohol Industrial and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal and Korea Alcohol 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 Korea Alcohol Industrial are associated (or correlated) with PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Korea Alcohol i.e., Korea Alcohol and PJ Metal go up and down completely randomly.
Pair Corralation between Korea Alcohol and PJ Metal
If you would invest 982,753 in Korea Alcohol Industrial on January 19, 2025 and sell it today you would lose (75,753) from holding Korea Alcohol Industrial or give up 7.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Alcohol Industrial vs. PJ Metal Co
Performance |
| Timeline |
| Korea Alcohol Industrial |
| PJ Metal |
Korea Alcohol and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Alcohol and PJ Metal
The main advantage of trading using opposite Korea Alcohol and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Alcohol position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Korea Alcohol vs. Dongjin Semichem Co | Korea Alcohol vs. Solution Advanced Technology | Korea Alcohol vs. Busan Industrial Co | Korea Alcohol vs. AhnLab Inc |
| PJ Metal vs. Keum Kang Steel | PJ Metal vs. Samhyun Steel Co | PJ Metal vs. Gyeongnam Steel Co | PJ Metal vs. Jeil Steel Mfg |
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.
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