Correlation Between Jeil Steel and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Samyoung 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 Jeil Steel and Samyoung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeil Steel Mfg and Samyoung Electronics Co, you can compare the effects of market volatilities on Jeil Steel and Samyoung 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 Jeil Steel with a short position of Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Samyoung Electronics.
Diversification Opportunities for Jeil Steel and Samyoung Electronics
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeil and Samyoung is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics and Jeil 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 Jeil Steel Mfg are associated (or correlated) with Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Jeil Steel i.e., Jeil Steel and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Jeil Steel and Samyoung Electronics
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to generate 3.89 times more return on investment than Samyoung Electronics. However, Jeil Steel is 3.89 times more volatile than Samyoung Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.07 per unit of risk. If you would invest 169,600 in Jeil Steel Mfg on December 27, 2024 and sell it today you would earn a total of 27,300 from holding Jeil Steel Mfg or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeil Steel Mfg vs. Samyoung Electronics Co
Performance |
| Timeline |
| Jeil Steel Mfg |
| Samyoung Electronics |
Jeil Steel and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Samyoung Electronics
The main advantage of trading using opposite Jeil Steel and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Samyoung 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Jeil Steel vs. Heungkuk Metaltech CoLtd | Jeil Steel vs. Duksan Hi Metal | Jeil Steel vs. Mobileleader CoLtd | Jeil Steel vs. Daedong Metals Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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