Correlation Between DYPNF CoLtd and Jin Air
Can any of the company-specific risk be diversified away by investing in both DYPNF CoLtd and Jin Air 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 DYPNF CoLtd and Jin Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DYPNF CoLtd and Jin Air Co, you can compare the effects of market volatilities on DYPNF CoLtd and Jin Air 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 DYPNF CoLtd with a short position of Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of DYPNF CoLtd and Jin Air.
Diversification Opportunities for DYPNF CoLtd and Jin Air
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DYPNF and Jin is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding DYPNF CoLtd and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air and DYPNF CoLtd 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 DYPNF CoLtd are associated (or correlated) with Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of DYPNF CoLtd i.e., DYPNF CoLtd and Jin Air go up and down completely randomly.
Pair Corralation between DYPNF CoLtd and Jin Air
Assuming the 90 days trading horizon DYPNF CoLtd is expected to under-perform the Jin Air. In addition to that, DYPNF CoLtd is 1.57 times more volatile than Jin Air Co. It trades about -0.06 of its total potential returns per unit of risk. Jin Air Co is currently generating about -0.03 per unit of volatility. If you would invest 1,570,000 in Jin Air Co on August 28, 2024 and sell it today you would lose (493,000) from holding Jin Air Co or give up 31.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DYPNF CoLtd vs. Jin Air Co
Performance |
| Timeline |
| DYPNF CoLtd |
| Jin Air |
DYPNF CoLtd and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DYPNF CoLtd and Jin Air
The main advantage of trading using opposite DYPNF CoLtd and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DYPNF CoLtd position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| DYPNF CoLtd vs. Sejong Telecom | DYPNF CoLtd vs. Phoenix Materials Co | DYPNF CoLtd vs. Lake Materials Co | DYPNF CoLtd vs. ECSTELECOM Co |
| Jin Air vs. Busan Industrial Co | Jin Air vs. Busan Ind | Jin Air vs. Mirae Asset Daewoo | Jin Air vs. UNISEM 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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