Correlation Between Jeil Steel and Ni Steel
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Ni Steel 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 Ni Steel 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 Ni Steel, you can compare the effects of market volatilities on Jeil Steel and Ni Steel 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 Ni Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Ni Steel.
Diversification Opportunities for Jeil Steel and Ni Steel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeil and 008260 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Ni Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ni Steel 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 Ni Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ni Steel has no effect on the direction of Jeil Steel i.e., Jeil Steel and Ni Steel go up and down completely randomly.
Pair Corralation between Jeil Steel and Ni Steel
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to generate 1.77 times more return on investment than Ni Steel. However, Jeil Steel is 1.77 times more volatile than Ni Steel. It trades about 0.15 of its potential returns per unit of risk. Ni Steel is currently generating about 0.05 per unit of risk. If you would invest 163,000 in Jeil Steel Mfg on August 25, 2024 and sell it today you would earn a total of 27,500 from holding Jeil Steel Mfg or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jeil Steel Mfg vs. Ni Steel
Performance |
| Timeline |
| Jeil Steel Mfg |
| Ni Steel |
Jeil Steel and Ni Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Ni Steel
The main advantage of trading using opposite Jeil Steel and Ni Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Ni Steel 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 Ni Steel will offset losses from the drop in Ni Steel's long position.| Jeil Steel vs. Dong A Steel Technology | Jeil Steel vs. Husteel | Jeil Steel vs. PH Tech Co | Jeil Steel vs. SS TECH |
| Ni Steel vs. Youngchang Chemical Co | Ni Steel vs. Chin Yang Chemical | Ni Steel vs. MediaZen | Ni Steel vs. Korea Petro Chemical |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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