Correlation Between Jin Air and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both Jin Air and Narae Nanotech 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 Narae Nanotech 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 Narae Nanotech Corp, you can compare the effects of market volatilities on Jin Air and Narae Nanotech 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 Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jin Air and Narae Nanotech.
Diversification Opportunities for Jin Air and Narae Nanotech
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jin and Narae is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jin Air Co and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp 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 Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Jin Air i.e., Jin Air and Narae Nanotech go up and down completely randomly.
Pair Corralation between Jin Air and Narae Nanotech
Assuming the 90 days trading horizon Jin Air Co is expected to generate 0.75 times more return on investment than Narae Nanotech. However, Jin Air Co is 1.33 times less risky than Narae Nanotech. It trades about 0.01 of its potential returns per unit of risk. Narae Nanotech Corp is currently generating about -0.56 per unit of risk. If you would invest 1,001,000 in Jin Air Co on November 7, 2024 and sell it today you would earn a total of 1,000.00 from holding Jin Air Co or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Jin Air Co vs. Narae Nanotech Corp
Performance |
| Timeline |
| Jin Air |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Narae Nanotech Corp |
Jin Air and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jin Air and Narae Nanotech
The main advantage of trading using opposite Jin Air and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jin Air position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Jin Air vs. Mobileleader CoLtd | Jin Air vs. SK Chemicals Co | Jin Air vs. Hyundai Home Shopping | Jin Air vs. Hansol Chemical Co |
| Narae Nanotech vs. Dawonsys CoLtd | Narae Nanotech vs. Elentec Co | Narae Nanotech vs. Daebo Magnetic CoLtd | Narae Nanotech vs. TSI 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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