Correlation Between Jeil Steel and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Jeil Steel and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Iljin Display.
Diversification Opportunities for Jeil Steel and Iljin Display
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeil and Iljin is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Jeil Steel i.e., Jeil Steel and Iljin Display go up and down completely randomly.
Pair Corralation between Jeil Steel and Iljin Display
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to under-perform the Iljin Display. In addition to that, Jeil Steel is 4.15 times more volatile than Iljin Display. It trades about -0.12 of its total potential returns per unit of risk. Iljin Display is currently generating about -0.02 per unit of volatility. If you would invest 86,000 in Iljin Display on September 13, 2024 and sell it today you would lose (800.00) from holding Iljin Display or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeil Steel Mfg vs. Iljin Display
Performance |
| Timeline |
| Jeil Steel Mfg |
| Iljin Display |
Jeil Steel and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Iljin Display
The main advantage of trading using opposite Jeil Steel and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Jeil Steel vs. Keum Kang Steel | Jeil Steel vs. Samhyun Steel Co | Jeil Steel vs. Gyeongnam Steel Co | Jeil Steel vs. Wonil Special Steel |
| Iljin Display vs. DAEDUCK ELECTRONICS CoLtd | Iljin Display vs. Sungmoon Electronics Co | Iljin Display vs. Solution Advanced Technology | Iljin Display vs. Busan Industrial 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |