Correlation Between Jin Air and Samyoung M
Can any of the company-specific risk be diversified away by investing in both Jin Air and Samyoung M 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 Samyoung M 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 Samyoung M Tek Co, you can compare the effects of market volatilities on Jin Air and Samyoung M 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 Samyoung M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Samyoung M.
Diversification Opportunities for Jin Air and Samyoung M
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jin and Samyoung is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Samyoung M Tek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung M Tek 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 Samyoung M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung M Tek has no effect on the direction of Jin Air i.e., Jin Air and Samyoung M go up and down completely randomly.
Pair Corralation between Jin Air and Samyoung M
Assuming the 90 days trading horizon Jin Air Co is expected to under-perform the Samyoung M. In addition to that, Jin Air is 1.05 times more volatile than Samyoung M Tek Co. It trades about -0.01 of its total potential returns per unit of risk. Samyoung M Tek Co is currently generating about 0.01 per unit of volatility. If you would invest 413,500 in Samyoung M Tek Co on September 14, 2024 and sell it today you would lose (2,500) from holding Samyoung M Tek Co or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.04% |
| Values | Daily Returns |
Jin Air Co vs. Samyoung M Tek Co
Performance |
| Timeline |
| Jin Air |
| Samyoung M Tek |
Jin Air and Samyoung M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Samyoung M
The main advantage of trading using opposite Jin Air and Samyoung M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, Samyoung M 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 Samyoung M will offset losses from the drop in Samyoung M's long position.| Jin Air vs. Air Busan Co | Jin Air vs. Tway Air Co | Jin Air vs. Solution Advanced Technology | Jin Air vs. Busan Industrial Co |
| Samyoung M vs. Golden Bridge Investment | Samyoung M vs. LB Investment | Samyoung M vs. Stic Investments | Samyoung M vs. Jin Air 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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