Correlation Between ZUM Internet and J Steel
Can any of the company-specific risk be diversified away by investing in both ZUM Internet and J Steel 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 ZUM Internet and J Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZUM Internet Corp and J Steel Co, you can compare the effects of market volatilities on ZUM Internet and J Steel 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 ZUM Internet with a short position of J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZUM Internet and J Steel.
Diversification Opportunities for ZUM Internet and J Steel
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZUM and 023440 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ZUM Internet Corp and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel and ZUM Internet 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 ZUM Internet Corp are associated (or correlated) with J Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Steel has no effect on the direction of ZUM Internet i.e., ZUM Internet and J Steel go up and down completely randomly.
Pair Corralation between ZUM Internet and J Steel
Assuming the 90 days trading horizon ZUM Internet Corp is expected to under-perform the J Steel. But the stock apears to be less risky and, when comparing its historical volatility, ZUM Internet Corp is 1.33 times less risky than J Steel. The stock trades about -0.01 of its potential returns per unit of risk. The J Steel Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 262,000 in J Steel Co on August 31, 2024 and sell it today you would lose (83,000) from holding J Steel Co or give up 31.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
ZUM Internet Corp vs. J Steel Co
Performance |
| Timeline |
| ZUM Internet Corp |
| J Steel |
ZUM Internet and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZUM Internet and J Steel
The main advantage of trading using opposite ZUM Internet and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZUM Internet position performs unexpectedly, J Steel 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 J Steel will offset losses from the drop in J Steel's long position.| ZUM Internet vs. Devsisters corporation | ZUM Internet vs. Konan Technology | ZUM Internet vs. Nice Information Telecommunication | ZUM Internet vs. InfoBank |
| J Steel vs. Samsung Electronics Co | J Steel vs. Samsung Electronics Co | J Steel vs. LG Energy Solution | J Steel vs. SK Hynix |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |