Correlation Between Digital Imaging and J Steel
Can any of the company-specific risk be diversified away by investing in both Digital Imaging 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 Digital Imaging and J Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Imaging Technology and J Steel Co, you can compare the effects of market volatilities on Digital Imaging 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 Digital Imaging with a short position of J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Imaging and J Steel.
Diversification Opportunities for Digital Imaging and J Steel
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digital and 023440 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Digital Imaging Technology and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel and Digital Imaging 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 Digital Imaging Technology 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 Digital Imaging i.e., Digital Imaging and J Steel go up and down completely randomly.
Pair Corralation between Digital Imaging and J Steel
Assuming the 90 days trading horizon Digital Imaging Technology is expected to generate 0.97 times more return on investment than J Steel. However, Digital Imaging Technology is 1.03 times less risky than J Steel. It trades about 0.06 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 589,211 in Digital Imaging Technology on October 11, 2024 and sell it today you would earn a total of 752,789 from holding Digital Imaging Technology or generate 127.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Imaging Technology vs. J Steel Co
Performance |
| Timeline |
| Digital Imaging Tech |
| J Steel |
Digital Imaging and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Imaging and J Steel
The main advantage of trading using opposite Digital Imaging and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Imaging 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.| Digital Imaging vs. Sung Bo Chemicals | Digital Imaging vs. Lotte Fine Chemical | Digital Imaging vs. JC Chemical Co | Digital Imaging vs. Kbi Metal Co |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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