Correlation Between Duksan Hi and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and PJ Metal Co, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and PJ Metal.
Diversification Opportunities for Duksan Hi and PJ Metal
Weak diversification
The 3 months correlation between Duksan and 128660 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal and Duksan Hi 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 Duksan Hi Metal 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 Duksan Hi i.e., Duksan Hi and PJ Metal go up and down completely randomly.
Pair Corralation between Duksan Hi and PJ Metal
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the PJ Metal. In addition to that, Duksan Hi is 1.57 times more volatile than PJ Metal Co. It trades about -0.35 of its total potential returns per unit of risk. PJ Metal Co is currently generating about -0.16 per unit of volatility. If you would invest 327,000 in PJ Metal Co on August 27, 2024 and sell it today you would lose (20,000) from holding PJ Metal Co or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. PJ Metal Co
Performance |
| Timeline |
| Duksan Hi Metal |
| PJ Metal |
Duksan Hi and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and PJ Metal
The main advantage of trading using opposite Duksan Hi and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
| PJ Metal vs. iNtRON Biotechnology | PJ Metal vs. Lotte Chilsung Beverage | PJ Metal vs. Aprogen Healthcare Games | PJ Metal vs. Chorokbaem Healthcare 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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