Correlation Between Nable Communications and PJ Metal
Can any of the company-specific risk be diversified away by investing in both Nable Communications and PJ Metal 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 Nable Communications and PJ Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nable Communications and PJ Metal Co, you can compare the effects of market volatilities on Nable Communications and PJ Metal 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 Nable Communications with a short position of PJ Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nable Communications and PJ Metal.
Diversification Opportunities for Nable Communications and PJ Metal
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nable and 128660 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Nable Communications and PJ Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PJ Metal and Nable Communications 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 Nable Communications are associated (or correlated) with PJ Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PJ Metal has no effect on the direction of Nable Communications i.e., Nable Communications and PJ Metal go up and down completely randomly.
Pair Corralation between Nable Communications and PJ Metal
Assuming the 90 days trading horizon Nable Communications is expected to under-perform the PJ Metal. In addition to that, Nable Communications is 3.82 times more volatile than PJ Metal Co. It trades about -0.12 of its total potential returns per unit of risk. PJ Metal Co is currently generating about -0.23 per unit of volatility. If you would invest 303,500 in PJ Metal Co on November 7, 2024 and sell it today you would lose (5,000) from holding PJ Metal Co or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nable Communications vs. PJ Metal Co
Performance |
| Timeline |
| Nable Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| PJ Metal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nable Communications and PJ Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nable Communications and PJ Metal
The main advantage of trading using opposite Nable Communications and PJ Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nable Communications position performs unexpectedly, PJ Metal 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 PJ Metal will offset losses from the drop in PJ Metal's long position.| Nable Communications vs. Heungkuk Metaltech CoLtd | Nable Communications vs. Ilji Technology Co | Nable Communications vs. AeroSpace Technology of | Nable Communications vs. Puloon Technology |
| PJ Metal vs. Dongnam Chemical Co | PJ Metal vs. Namhae Chemical | PJ Metal vs. Hansol Chemical Co | PJ Metal vs. Samsung Life Insurance |
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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