Correlation Between Leatec Fine and I Jang
Can any of the company-specific risk be diversified away by investing in both Leatec Fine 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 Leatec Fine and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leatec Fine Ceramics and I Jang Industrial, you can compare the effects of market volatilities on Leatec Fine 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 Leatec Fine with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leatec Fine and I Jang.
Diversification Opportunities for Leatec Fine and I Jang
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leatec and 8342 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Leatec Fine Ceramics 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 Leatec Fine 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 Leatec Fine Ceramics 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 Leatec Fine i.e., Leatec Fine and I Jang go up and down completely randomly.
Pair Corralation between Leatec Fine and I Jang
Assuming the 90 days trading horizon Leatec Fine Ceramics is expected to under-perform the I Jang. In addition to that, Leatec Fine is 1.14 times more volatile than I Jang Industrial. It trades about -0.28 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 8,840 in I Jang Industrial on December 11, 2024 and sell it today you would lose (80.00) from holding I Jang Industrial or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leatec Fine Ceramics vs. I Jang Industrial
Performance |
| Timeline |
| Leatec Fine Ceramics |
| I Jang Industrial |
Leatec Fine and I Jang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leatec Fine and I Jang
The main advantage of trading using opposite Leatec Fine and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leatec Fine 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.| Leatec Fine vs. Standard Foods Corp | Leatec Fine vs. Newretail Co | Leatec Fine vs. Castles Technology Co | Leatec Fine vs. Louisa Professional Coffee |
| I Jang vs. Formosan Rubber Group | I Jang vs. Union Bank of | I Jang vs. Formosa Plastics Corp | I Jang vs. China General Plastics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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