Correlation Between Jeil Steel and Jin Air
Can any of the company-specific risk be diversified away by investing in both Jeil Steel and Jin Air 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 Jin Air 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 Jin Air Co, you can compare the effects of market volatilities on Jeil Steel and Jin Air 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 Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeil Steel and Jin Air.
Diversification Opportunities for Jeil Steel and Jin Air
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeil and Jin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jeil Steel Mfg and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air 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 Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of Jeil Steel i.e., Jeil Steel and Jin Air go up and down completely randomly.
Pair Corralation between Jeil Steel and Jin Air
Assuming the 90 days trading horizon Jeil Steel Mfg is expected to under-perform the Jin Air. In addition to that, Jeil Steel is 1.5 times more volatile than Jin Air Co. It trades about -0.07 of its total potential returns per unit of risk. Jin Air Co is currently generating about -0.08 per unit of volatility. If you would invest 1,120,000 in Jin Air Co on September 12, 2024 and sell it today you would lose (91,000) from holding Jin Air Co or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeil Steel Mfg vs. Jin Air Co
Performance |
| Timeline |
| Jeil Steel Mfg |
| Jin Air |
Jeil Steel and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeil Steel and Jin Air
The main advantage of trading using opposite Jeil Steel and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeil Steel position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| Jeil Steel vs. SEOJEON ELECTRIC MACHINERY | Jeil Steel vs. DB Insurance Co | Jeil Steel vs. Settlebank | Jeil Steel vs. Seoam Machinery Industry |
| Jin Air vs. Air Busan Co | Jin Air vs. Tway Air Co | Jin Air vs. Solution Advanced Technology | Jin Air 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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