Correlation Between Jeil Steel and Dongil Steel
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Dongil 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 Dongil 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 Dongil Steel Co, you can compare the effects of market volatilities on Jeil Steel and Dongil 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 Dongil Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Dongil Steel.
Diversification Opportunities for Jeil Steel and Dongil Steel
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeil and Dongil is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Dongil Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil 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 Dongil Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Steel has no effect on the direction of Jeil Steel i.e., Jeil Steel and Dongil Steel go up and down completely randomly.
Pair Corralation between Jeil Steel and Dongil Steel
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to generate 1.06 times more return on investment than Dongil Steel. However, Jeil Steel is 1.06 times more volatile than Dongil Steel Co. It trades about 0.04 of its potential returns per unit of risk. Dongil Steel Co is currently generating about 0.0 per unit of risk. If you would invest 154,000 in Jeil Steel Mfg on August 29, 2024 and sell it today you would earn a total of 33,800 from holding Jeil Steel Mfg or generate 21.95% 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. Dongil Steel Co
Performance |
| Timeline |
| Jeil Steel Mfg |
| Dongil Steel |
Jeil Steel and Dongil Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Dongil Steel
The main advantage of trading using opposite Jeil Steel and Dongil Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Dongil 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 Dongil Steel will offset losses from the drop in Dongil Steel's long position.| Jeil Steel vs. SK Telecom Co | Jeil Steel vs. Nable Communications | Jeil Steel vs. POSCO M TECH Co | Jeil Steel vs. SS TECH |
| Dongil Steel vs. Keum Kang Steel | Dongil Steel vs. Tplex Co | Dongil Steel vs. PJ Metal Co | Dongil Steel vs. Samhyun Steel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |