Correlation Between PJ Metal and Inzi Display
Can any of the company-specific risk be diversified away by investing in both PJ Metal and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on PJ Metal and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and Inzi Display.
Diversification Opportunities for PJ Metal and Inzi Display
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 128660 and Inzi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of PJ Metal i.e., PJ Metal and Inzi Display go up and down completely randomly.
Pair Corralation between PJ Metal and Inzi Display
Assuming the 90 days trading horizon PJ Metal Co is expected to generate 1.26 times more return on investment than Inzi Display. However, PJ Metal is 1.26 times more volatile than Inzi Display CoLtd. It trades about -0.24 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.33 per unit of risk. If you would invest 323,500 in PJ Metal Co on September 4, 2024 and sell it today you would lose (29,000) from holding PJ Metal Co or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PJ Metal Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| PJ Metal |
| Inzi Display CoLtd |
PJ Metal and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Metal and Inzi Display
The main advantage of trading using opposite PJ Metal and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| PJ Metal vs. Hyundai Green Food | PJ Metal vs. Seoul Food Industrial | PJ Metal vs. CU Medical Systems | PJ Metal vs. Samyang Foods Co |
| Inzi Display vs. ChipsMedia | Inzi Display vs. DC Media Co | Inzi Display vs. Visang Education | Inzi Display vs. Nasmedia 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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