Correlation Between PJ Metal and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both PJ Metal and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on PJ Metal and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and Shinsegae Information.
Diversification Opportunities for PJ Metal and Shinsegae Information
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 128660 and Shinsegae is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal Co and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of PJ Metal i.e., PJ Metal and Shinsegae Information go up and down completely randomly.
Pair Corralation between PJ Metal and Shinsegae Information
Assuming the 90 days trading horizon PJ Metal Co is expected to under-perform the Shinsegae Information. In addition to that, PJ Metal is 1.47 times more volatile than Shinsegae Information Communication. It trades about -0.17 of its total potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.23 per unit of volatility. If you would invest 940,000 in Shinsegae Information Communication on September 12, 2024 and sell it today you would lose (90,000) from holding Shinsegae Information Communication or give up 9.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJ Metal Co vs. Shinsegae Information Communic
Performance |
| Timeline |
| PJ Metal |
| Shinsegae Information |
PJ Metal and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Metal and Shinsegae Information
The main advantage of trading using opposite PJ Metal and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| PJ Metal vs. Dongwon Metal Co | PJ Metal vs. DONGKUK TED METAL | PJ Metal vs. BNK Financial Group | PJ Metal vs. KB Financial Group |
| Shinsegae Information vs. Samsung Electronics Co | Shinsegae Information vs. Samsung Electronics Co | Shinsegae Information vs. SK Hynix | Shinsegae Information vs. POSCO Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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