Correlation Between Jeil Steel and Kaonmedia
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Kaonmedia 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 Kaonmedia 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 Kaonmedia Co, you can compare the effects of market volatilities on Jeil Steel and Kaonmedia 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 Kaonmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Kaonmedia.
Diversification Opportunities for Jeil Steel and Kaonmedia
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeil and Kaonmedia is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Kaonmedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaonmedia 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 Kaonmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaonmedia has no effect on the direction of Jeil Steel i.e., Jeil Steel and Kaonmedia go up and down completely randomly.
Pair Corralation between Jeil Steel and Kaonmedia
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to generate 1.76 times more return on investment than Kaonmedia. However, Jeil Steel is 1.76 times more volatile than Kaonmedia Co. It trades about -0.02 of its potential returns per unit of risk. Kaonmedia Co is currently generating about -0.16 per unit of risk. If you would invest 226,000 in Jeil Steel Mfg on September 3, 2024 and sell it today you would lose (47,000) from holding Jeil Steel Mfg or give up 20.8% 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. Kaonmedia Co
Performance |
| Timeline |
| Jeil Steel Mfg |
| Kaonmedia |
Jeil Steel and Kaonmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Kaonmedia
The main advantage of trading using opposite Jeil Steel and Kaonmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Kaonmedia 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 Kaonmedia will offset losses from the drop in Kaonmedia's long position.| Jeil Steel vs. Keum Kang Steel | Jeil Steel vs. Tplex Co | Jeil Steel vs. PJ Metal Co | Jeil Steel vs. Gyeongnam Steel Co |
| Kaonmedia vs. Dongsin Engineering Construction | Kaonmedia vs. Doosan Fuel Cell | Kaonmedia vs. Daishin Balance 1 | Kaonmedia vs. Total Soft Bank |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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