Correlation Between Jeil Steel and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and PJ Metal 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 PJ Metal 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 PJ Metal Co, you can compare the effects of market volatilities on Jeil Steel and PJ Metal 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 PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and PJ Metal.
Diversification Opportunities for Jeil Steel and PJ Metal
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeil and 128660 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal 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 PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Jeil Steel i.e., Jeil Steel and PJ Metal go up and down completely randomly.
Pair Corralation between Jeil Steel and PJ Metal
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to under-perform the PJ Metal. In addition to that, Jeil Steel is 3.5 times more volatile than PJ Metal Co. It trades about -0.22 of its total potential returns per unit of risk. PJ Metal Co is currently generating about 0.37 per unit of volatility. If you would invest 291,194 in PJ Metal Co on October 23, 2024 and sell it today you would earn a total of 11,806 from holding PJ Metal Co or generate 4.05% 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. PJ Metal Co
Performance |
| Timeline |
| Jeil Steel Mfg |
| PJ Metal |
Jeil Steel and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and PJ Metal
The main advantage of trading using opposite Jeil Steel and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Jeil Steel vs. Air Busan Co | Jeil Steel vs. Barunson Entertainment Arts | Jeil Steel vs. Digital Multimedia Technology | Jeil Steel vs. Kaonmedia Co |
| PJ Metal vs. ITM Semiconductor Co | PJ Metal vs. LG Household Healthcare | PJ Metal vs. E Investment Development | PJ Metal vs. Aprogen Healthcare Games |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |