Correlation Between I Jang and Aerospace Industrial
Can any of the company-specific risk be diversified away by investing in both I Jang and Aerospace Industrial 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 I Jang and Aerospace Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Jang Industrial and Aerospace Industrial Development, you can compare the effects of market volatilities on I Jang and Aerospace Industrial 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 I Jang with a short position of Aerospace Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Jang and Aerospace Industrial.
Diversification Opportunities for I Jang and Aerospace Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between 8342 and Aerospace is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding I Jang Industrial and Aerospace Industrial Developme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Industrial and I Jang 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 I Jang Industrial are associated (or correlated) with Aerospace Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Industrial has no effect on the direction of I Jang i.e., I Jang and Aerospace Industrial go up and down completely randomly.
Pair Corralation between I Jang and Aerospace Industrial
Assuming the 90 days trading horizon I Jang Industrial is expected to generate 1.3 times more return on investment than Aerospace Industrial. However, I Jang is 1.3 times more volatile than Aerospace Industrial Development. It trades about 0.05 of its potential returns per unit of risk. Aerospace Industrial Development is currently generating about -0.08 per unit of risk. If you would invest 7,920 in I Jang Industrial on October 13, 2024 and sell it today you would earn a total of 960.00 from holding I Jang Industrial or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
I Jang Industrial vs. Aerospace Industrial Developme
Performance |
| Timeline |
| I Jang Industrial |
| Aerospace Industrial |
I Jang and Aerospace Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Jang and Aerospace Industrial
The main advantage of trading using opposite I Jang and Aerospace Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Jang position performs unexpectedly, Aerospace Industrial 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 Aerospace Industrial will offset losses from the drop in Aerospace Industrial's long position.| I Jang vs. AVerMedia Technologies | I Jang vs. Min Aik Technology | I Jang vs. Uniform Industrial Corp | I Jang vs. Information Technology Total |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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