Correlation Between E Investment and J Steel
Can any of the company-specific risk be diversified away by investing in both E Investment 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 E Investment and J Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and J Steel Co, you can compare the effects of market volatilities on E Investment 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 E Investment with a short position of J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and J Steel.
Diversification Opportunities for E Investment and J Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and 023440 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel and E Investment 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 E Investment Development 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 E Investment i.e., E Investment and J Steel go up and down completely randomly.
Pair Corralation between E Investment and J Steel
If you would invest 147,900 in J Steel Co on November 3, 2024 and sell it today you would earn a total of 3,800 from holding J Steel Co or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. J Steel Co
Performance |
| Timeline |
| E Investment Development |
| J Steel |
E Investment and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and J Steel
The main advantage of trading using opposite E Investment and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment 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.| E Investment vs. Woorim Machinery Co | E Investment vs. SEOJEON ELECTRIC MACHINERY | E Investment vs. Shinhan Inverse Silver | E Investment vs. Industrial Bank |
| J Steel vs. Samsung Electronics Co | J Steel vs. Samsung Electronics Co | J Steel vs. LG Energy Solution | J Steel vs. SK Hynix |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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