Correlation Between PJ Metal and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both PJ Metal and YeSUN Tech 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 YeSUN Tech 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 YeSUN Tech CoLtd, you can compare the effects of market volatilities on PJ Metal and YeSUN Tech 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 YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and YeSUN Tech.
Diversification Opportunities for PJ Metal and YeSUN Tech
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 128660 and YeSUN is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal Co and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech 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 YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of PJ Metal i.e., PJ Metal and YeSUN Tech go up and down completely randomly.
Pair Corralation between PJ Metal and YeSUN Tech
Assuming the 90 days trading horizon PJ Metal Co is expected to generate 0.54 times more return on investment than YeSUN Tech. However, PJ Metal Co is 1.84 times less risky than YeSUN Tech. It trades about -0.17 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.26 per unit of risk. If you would invest 318,500 in PJ Metal Co on September 12, 2024 and sell it today you would lose (34,000) from holding PJ Metal Co or give up 10.68% 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. YeSUN Tech CoLtd
Performance |
| Timeline |
| PJ Metal |
| YeSUN Tech CoLtd |
PJ Metal and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PJ Metal and YeSUN Tech
The main advantage of trading using opposite PJ Metal and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech'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 |
| YeSUN Tech vs. Youngsin Metal Industrial | YeSUN Tech vs. Digital Power Communications | YeSUN Tech vs. Kukil Metal Co | YeSUN Tech vs. Inzi Display CoLtd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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