Correlation Between PLAYWITH and J Steel
Can any of the company-specific risk be diversified away by investing in both PLAYWITH and J 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 PLAYWITH and J Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and J Steel Co, you can compare the effects of market volatilities on PLAYWITH and J 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 PLAYWITH with a short position of J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and J Steel.
Diversification Opportunities for PLAYWITH and J Steel
Very weak diversification
The 3 months correlation between PLAYWITH and 023440 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel and PLAYWITH 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 PLAYWITH are associated (or correlated) with J Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Steel has no effect on the direction of PLAYWITH i.e., PLAYWITH and J Steel go up and down completely randomly.
Pair Corralation between PLAYWITH and J Steel
Assuming the 90 days trading horizon PLAYWITH is expected to generate 0.74 times more return on investment than J Steel. However, PLAYWITH is 1.34 times less risky than J Steel. It trades about -0.02 of its potential returns per unit of risk. J Steel Co is currently generating about -0.03 per unit of risk. If you would invest 591,000 in PLAYWITH on October 29, 2024 and sell it today you would lose (261,000) from holding PLAYWITH or give up 44.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. J Steel Co
Performance |
| Timeline |
| PLAYWITH |
| J Steel |
PLAYWITH and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and J Steel
The main advantage of trading using opposite PLAYWITH and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH position performs unexpectedly, J 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 J Steel will offset losses from the drop in J Steel's long position.| PLAYWITH vs. TS Investment Corp | PLAYWITH vs. Hansol Homedeco Co | PLAYWITH vs. Nh Investment And | PLAYWITH vs. DB Financial Investment |
| J Steel vs. DONGKUK TED METAL | J Steel vs. BIT Computer Co | J Steel vs. Guyoung Technology Co | J Steel vs. Miwon Chemicals 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 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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