Correlation Between Jeil Steel and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on Jeil Steel and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Stic Investments.
Diversification Opportunities for Jeil Steel and Stic Investments
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jeil and Stic is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Jeil Steel i.e., Jeil Steel and Stic Investments go up and down completely randomly.
Pair Corralation between Jeil Steel and Stic Investments
Assuming the 90 days trading horizon Jeil Steel is expected to generate 129.55 times less return on investment than Stic Investments. But when comparing it to its historical volatility, Jeil Steel Mfg is 1.1 times less risky than Stic Investments. It trades about 0.0 of its potential returns per unit of risk. Stic Investments is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 710,000 in Stic Investments on January 14, 2025 and sell it today you would earn a total of 313,000 from holding Stic Investments or generate 44.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeil Steel Mfg vs. Stic Investments
Performance |
| Timeline |
| Jeil Steel Mfg |
| Stic Investments |
Jeil Steel and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Stic Investments
The main advantage of trading using opposite Jeil Steel and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Jeil Steel vs. Keum Kang Steel | Jeil Steel vs. Tplex Co | Jeil Steel vs. PJ Metal Co | Jeil Steel vs. Samhyun Steel Co |
| Stic Investments vs. Lotte Data Communication | Stic Investments vs. Kisan Telecom Co | Stic Investments vs. Kukil Metal Co | Stic Investments vs. Shinsegae Information Communication |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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