Correlation Between Green World and I Jang
Can any of the company-specific risk be diversified away by investing in both Green World 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 Green World and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and I Jang Industrial, you can compare the effects of market volatilities on Green World 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 Green World with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and I Jang.
Diversification Opportunities for Green World and I Jang
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and 8342 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech 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 Green World 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 Green World Fintech 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 Green World i.e., Green World and I Jang go up and down completely randomly.
Pair Corralation between Green World and I Jang
Assuming the 90 days trading horizon Green World Fintech is expected to generate 2.96 times more return on investment than I Jang. However, Green World is 2.96 times more volatile than I Jang Industrial. It trades about 0.22 of its potential returns per unit of risk. I Jang Industrial is currently generating about -0.03 per unit of risk. If you would invest 6,230 in Green World Fintech on November 29, 2024 and sell it today you would earn a total of 890.00 from holding Green World Fintech or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. I Jang Industrial
Performance |
| Timeline |
| Green World Fintech |
| I Jang Industrial |
Green World and I Jang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and I Jang
The main advantage of trading using opposite Green World and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World 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.| Green World vs. Te Chang Construction | Green World vs. An Shin Food Services | Green World vs. Shieh Yih Machinery | Green World vs. Strong H Machinery |
| I Jang vs. Great China Metal | I Jang vs. Tai Tung Communication | I Jang vs. Pan Asia Chemical | I Jang vs. Loop Telecommunication International |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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