Correlation Between Eugene Technology and J Steel
Can any of the company-specific risk be diversified away by investing in both Eugene Technology 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 Eugene Technology and J Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and J Steel Co, you can compare the effects of market volatilities on Eugene Technology 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 Eugene Technology with a short position of J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and J Steel.
Diversification Opportunities for Eugene Technology and J Steel
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eugene and 023440 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel and Eugene Technology 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 Eugene Technology CoLtd 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 Eugene Technology i.e., Eugene Technology and J Steel go up and down completely randomly.
Pair Corralation between Eugene Technology and J Steel
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 0.71 times more return on investment than J Steel. However, Eugene Technology CoLtd is 1.41 times less risky than J Steel. It trades about 0.04 of its potential returns per unit of risk. J Steel Co is currently generating about 0.0 per unit of risk. If you would invest 2,557,058 in Eugene Technology CoLtd on October 11, 2024 and sell it today you would earn a total of 1,237,942 from holding Eugene Technology CoLtd or generate 48.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. J Steel Co
Performance |
| Timeline |
| Eugene Technology CoLtd |
| J Steel |
Eugene Technology and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and J Steel
The main advantage of trading using opposite Eugene Technology and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology 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.| Eugene Technology vs. Golden Bridge Investment | Eugene Technology vs. TS Investment Corp | Eugene Technology vs. Top Material Co | Eugene Technology vs. NH Investment Securities |
| J Steel vs. Eugene Technology CoLtd | J Steel vs. Digital Imaging Technology | J Steel vs. LG Display Co | J Steel vs. Seers Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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