Correlation Between Ko Ja and I Jang
Can any of the company-specific risk be diversified away by investing in both Ko Ja and I Jang 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 Ko Ja and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ko Ja Cayman and I Jang Industrial, you can compare the effects of market volatilities on Ko Ja and I Jang 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 Ko Ja with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ko Ja and I Jang.
Diversification Opportunities for Ko Ja and I Jang
Very good diversification
The 3 months correlation between 5215 and 8342 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ko Ja Cayman and I Jang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Jang Industrial and Ko Ja 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 Ko Ja Cayman are associated (or correlated) with I Jang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Jang Industrial has no effect on the direction of Ko Ja i.e., Ko Ja and I Jang go up and down completely randomly.
Pair Corralation between Ko Ja and I Jang
Assuming the 90 days trading horizon Ko Ja Cayman is expected to under-perform the I Jang. In addition to that, Ko Ja is 1.25 times more volatile than I Jang Industrial. It trades about -0.21 of its total potential returns per unit of risk. I Jang Industrial is currently generating about 0.04 per unit of volatility. If you would invest 8,740 in I Jang Industrial on November 6, 2024 and sell it today you would earn a total of 160.00 from holding I Jang Industrial or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ko Ja Cayman vs. I Jang Industrial
Performance |
| Timeline |
| Ko Ja Cayman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| I Jang Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Ko Ja and I Jang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ko Ja and I Jang
The main advantage of trading using opposite Ko Ja and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ko Ja position performs unexpectedly, I Jang 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 I Jang will offset losses from the drop in I Jang's long position.The idea behind Ko Ja Cayman and I Jang Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |