Correlation Between TOPMATERIAL and Jin Air
Can any of the company-specific risk be diversified away by investing in both TOPMATERIAL and Jin Air 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 TOPMATERIAL and Jin Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOPMATERIAL LTD and Jin Air Co, you can compare the effects of market volatilities on TOPMATERIAL and Jin Air 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 TOPMATERIAL with a short position of Jin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOPMATERIAL and Jin Air.
Diversification Opportunities for TOPMATERIAL and Jin Air
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TOPMATERIAL and Jin is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding TOPMATERIAL LTD and Jin Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jin Air and TOPMATERIAL 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 TOPMATERIAL LTD are associated (or correlated) with Jin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jin Air has no effect on the direction of TOPMATERIAL i.e., TOPMATERIAL and Jin Air go up and down completely randomly.
Pair Corralation between TOPMATERIAL and Jin Air
Assuming the 90 days trading horizon TOPMATERIAL LTD is expected to under-perform the Jin Air. In addition to that, TOPMATERIAL is 1.43 times more volatile than Jin Air Co. It trades about -0.12 of its total potential returns per unit of risk. Jin Air Co is currently generating about -0.04 per unit of volatility. If you would invest 1,390,000 in Jin Air Co on September 3, 2024 and sell it today you would lose (212,000) from holding Jin Air Co or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOPMATERIAL LTD vs. Jin Air Co
Performance |
| Timeline |
| TOPMATERIAL LTD |
| Jin Air |
TOPMATERIAL and Jin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOPMATERIAL and Jin Air
The main advantage of trading using opposite TOPMATERIAL and Jin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOPMATERIAL position performs unexpectedly, Jin Air 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 Jin Air will offset losses from the drop in Jin Air's long position.| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL vs. SK Hynix |
| Jin Air vs. DataSolution | Jin Air vs. Alton Sports CoLtd | Jin Air vs. SCI Information Service | Jin Air vs. Shinsegae Food |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |