Correlation Between UNISEM and PJ Metal
Can any of the company-specific risk be diversified away by investing in both UNISEM 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 UNISEM and PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and PJ Metal Co, you can compare the effects of market volatilities on UNISEM 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 UNISEM with a short position of PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and PJ Metal.
Diversification Opportunities for UNISEM and PJ Metal
Poor diversification
The 3 months correlation between UNISEM and 128660 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal and UNISEM 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 UNISEM Co 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 UNISEM i.e., UNISEM and PJ Metal go up and down completely randomly.
Pair Corralation between UNISEM and PJ Metal
Assuming the 90 days trading horizon UNISEM Co is expected to generate 1.15 times more return on investment than PJ Metal. However, UNISEM is 1.15 times more volatile than PJ Metal Co. It trades about -0.01 of its potential returns per unit of risk. PJ Metal Co is currently generating about -0.03 per unit of risk. If you would invest 822,976 in UNISEM Co on September 4, 2024 and sell it today you would lose (257,976) from holding UNISEM Co or give up 31.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. PJ Metal Co
Performance |
| Timeline |
| UNISEM |
| PJ Metal |
UNISEM and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and PJ Metal
The main advantage of trading using opposite UNISEM and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM 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.| UNISEM vs. Coloray International Investment | UNISEM vs. NH Investment Securities | UNISEM vs. DB Insurance Co | UNISEM vs. Total Soft Bank |
| PJ Metal vs. Hyundai Green Food | PJ Metal vs. Seoul Food Industrial | PJ Metal vs. CU Medical Systems | PJ Metal vs. Samyang Foods 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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