Correlation Between NewFlex Technology and PJ Metal
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology 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 NewFlex Technology and PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and PJ Metal Co, you can compare the effects of market volatilities on NewFlex Technology 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 NewFlex Technology with a short position of PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and PJ Metal.
Diversification Opportunities for NewFlex Technology and PJ Metal
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NewFlex and 128660 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology 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 NewFlex 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 NewFlex Technology 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 NewFlex Technology i.e., NewFlex Technology and PJ Metal go up and down completely randomly.
Pair Corralation between NewFlex Technology and PJ Metal
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the PJ Metal. In addition to that, NewFlex Technology is 1.37 times more volatile than PJ Metal Co. It trades about 0.0 of its total potential returns per unit of risk. PJ Metal Co is currently generating about 0.0 per unit of volatility. If you would invest 329,826 in PJ Metal Co on September 12, 2024 and sell it today you would lose (45,326) from holding PJ Metal Co or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. PJ Metal Co
Performance |
| Timeline |
| NewFlex Technology |
| PJ Metal |
NewFlex Technology and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and PJ Metal
The main advantage of trading using opposite NewFlex Technology and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology 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.| NewFlex Technology vs. Cube Entertainment | NewFlex Technology vs. Dreamus Company | NewFlex Technology vs. LG Energy Solution | NewFlex Technology vs. Dongwon System |
| PJ Metal vs. Dongwon Metal Co | PJ Metal vs. DONGKUK TED METAL | PJ Metal vs. BNK Financial Group | PJ Metal vs. KB Financial Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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