Correlation Between Jin Air and Daeduck Electronics
Can any of the company-specific risk be diversified away by investing in both Jin Air and Daeduck Electronics 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 Jin Air and Daeduck Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jin Air Co and Daeduck Electronics Co, you can compare the effects of market volatilities on Jin Air and Daeduck Electronics 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 Jin Air with a short position of Daeduck Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Daeduck Electronics.
Diversification Opportunities for Jin Air and Daeduck Electronics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jin and Daeduck is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Daeduck Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daeduck Electronics and Jin Air 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 Jin Air Co are associated (or correlated) with Daeduck Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daeduck Electronics has no effect on the direction of Jin Air i.e., Jin Air and Daeduck Electronics go up and down completely randomly.
Pair Corralation between Jin Air and Daeduck Electronics
Assuming the 90 days trading horizon Jin Air is expected to generate 1.98 times less return on investment than Daeduck Electronics. In addition to that, Jin Air is 3.48 times more volatile than Daeduck Electronics Co. It trades about 0.02 of its total potential returns per unit of risk. Daeduck Electronics Co is currently generating about 0.14 per unit of volatility. If you would invest 605,000 in Daeduck Electronics Co on November 3, 2024 and sell it today you would earn a total of 76,000 from holding Daeduck Electronics Co or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jin Air Co vs. Daeduck Electronics Co
Performance |
| Timeline |
| Jin Air |
| Daeduck Electronics |
Jin Air and Daeduck Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Daeduck Electronics
The main advantage of trading using opposite Jin Air and Daeduck Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, Daeduck Electronics 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 Daeduck Electronics will offset losses from the drop in Daeduck Electronics' long position.| Jin Air vs. Korea Information Communications | Jin Air vs. Hanjoo Light Metal | Jin Air vs. Dongil Metal Co | Jin Air vs. Automobile Pc |
| Daeduck Electronics vs. Samyang Foods Co | Daeduck Electronics vs. Aprogen Healthcare Games | Daeduck Electronics vs. Sangsin Energy Display | Daeduck Electronics vs. Mirai Semiconductors 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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