Correlation Between Jin Air and Innowireless
Can any of the company-specific risk be diversified away by investing in both Jin Air and Innowireless 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 Innowireless 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 Innowireless Co, you can compare the effects of market volatilities on Jin Air and Innowireless 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 Innowireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Innowireless.
Diversification Opportunities for Jin Air and Innowireless
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jin and Innowireless is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Innowireless Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innowireless 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 Innowireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innowireless has no effect on the direction of Jin Air i.e., Jin Air and Innowireless go up and down completely randomly.
Pair Corralation between Jin Air and Innowireless
Assuming the 90 days trading horizon Jin Air Co is expected to under-perform the Innowireless. But the stock apears to be less risky and, when comparing its historical volatility, Jin Air Co is 1.36 times less risky than Innowireless. The stock trades about -0.26 of its potential returns per unit of risk. The Innowireless Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,970,000 in Innowireless Co on October 13, 2024 and sell it today you would earn a total of 60,000 from holding Innowireless Co or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jin Air Co vs. Innowireless Co
Performance |
| Timeline |
| Jin Air |
| Innowireless |
Jin Air and Innowireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Innowireless
The main advantage of trading using opposite Jin Air and Innowireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, Innowireless 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 Innowireless will offset losses from the drop in Innowireless' long position.| Jin Air vs. Eugene Technology CoLtd | Jin Air vs. Mgame Corp | Jin Air vs. EV Advanced Material | Jin Air vs. Dongil Technology |
| Innowireless vs. Jin Air Co | Innowireless vs. Automobile Pc | Innowireless vs. Green Cross Medical | Innowireless vs. Digital Power Communications |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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