Correlation Between PJ Metal and Shinil Industrial
Can any of the company-specific risk be diversified away by investing in both PJ Metal and Shinil Industrial 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 PJ Metal and Shinil Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PJ Metal Co and Shinil Industrial Co, you can compare the effects of market volatilities on PJ Metal and Shinil Industrial 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 PJ Metal with a short position of Shinil Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and Shinil Industrial.
Diversification Opportunities for PJ Metal and Shinil Industrial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 128660 and Shinil is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal Co and Shinil Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Industrial and PJ Metal 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 PJ Metal Co are associated (or correlated) with Shinil Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Industrial has no effect on the direction of PJ Metal i.e., PJ Metal and Shinil Industrial go up and down completely randomly.
Pair Corralation between PJ Metal and Shinil Industrial
Assuming the 90 days trading horizon PJ Metal Co is expected to generate 2.4 times more return on investment than Shinil Industrial. However, PJ Metal is 2.4 times more volatile than Shinil Industrial Co. It trades about 0.01 of its potential returns per unit of risk. Shinil Industrial Co is currently generating about -0.06 per unit of risk. If you would invest 329,936 in PJ Metal Co on October 30, 2024 and sell it today you would lose (29,436) from holding PJ Metal Co or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJ Metal Co vs. Shinil Industrial Co
Performance |
| Timeline |
| PJ Metal |
| Shinil Industrial |
PJ Metal and Shinil Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Metal and Shinil Industrial
The main advantage of trading using opposite PJ Metal and Shinil Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal position performs unexpectedly, Shinil Industrial 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 Shinil Industrial will offset losses from the drop in Shinil Industrial's long position.| PJ Metal vs. Nable Communications | PJ Metal vs. Cloud Air CoLtd | PJ Metal vs. Daishin Information Communications | PJ Metal vs. Korea Air Svc |
| Shinil Industrial vs. Youngsin Metal Industrial | Shinil Industrial vs. Dongbang Transport Logistics | Shinil Industrial vs. Daejung Chemicals Metals | Shinil Industrial vs. Automobile Pc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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