Correlation Between Jin Air and CHOROKBAEM PANY
Can any of the company-specific risk be diversified away by investing in both Jin Air and CHOROKBAEM PANY 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 CHOROKBAEM PANY 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 CHOROKBAEM PANY Co, you can compare the effects of market volatilities on Jin Air and CHOROKBAEM PANY 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 CHOROKBAEM PANY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and CHOROKBAEM PANY.
Diversification Opportunities for Jin Air and CHOROKBAEM PANY
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jin and CHOROKBAEM is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and CHOROKBAEM PANY Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHOROKBAEM PANY 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 CHOROKBAEM PANY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHOROKBAEM PANY has no effect on the direction of Jin Air i.e., Jin Air and CHOROKBAEM PANY go up and down completely randomly.
Pair Corralation between Jin Air and CHOROKBAEM PANY
Assuming the 90 days trading horizon Jin Air Co is expected to generate 2.65 times more return on investment than CHOROKBAEM PANY. However, Jin Air is 2.65 times more volatile than CHOROKBAEM PANY Co. It trades about 0.03 of its potential returns per unit of risk. CHOROKBAEM PANY Co is currently generating about -0.25 per unit of risk. If you would invest 1,162,000 in Jin Air Co on September 3, 2024 and sell it today you would earn a total of 16,000 from holding Jin Air Co or generate 1.38% 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. CHOROKBAEM PANY Co
Performance |
| Timeline |
| Jin Air |
| CHOROKBAEM PANY |
Jin Air and CHOROKBAEM PANY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and CHOROKBAEM PANY
The main advantage of trading using opposite Jin Air and CHOROKBAEM PANY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, CHOROKBAEM PANY 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 CHOROKBAEM PANY will offset losses from the drop in CHOROKBAEM PANY's long position.| Jin Air vs. DataSolution | Jin Air vs. Alton Sports CoLtd | Jin Air vs. SCI Information Service | Jin Air vs. Shinsegae Food |
| CHOROKBAEM PANY vs. Samsung Electronics Co | CHOROKBAEM PANY vs. Samsung Electronics Co | CHOROKBAEM PANY vs. LG Energy Solution | CHOROKBAEM PANY 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |