Correlation Between Coxon Precise and I Jang
Can any of the company-specific risk be diversified away by investing in both Coxon Precise 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 Coxon Precise and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coxon Precise Industrial and I Jang Industrial, you can compare the effects of market volatilities on Coxon Precise 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 Coxon Precise with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coxon Precise and I Jang.
Diversification Opportunities for Coxon Precise and I Jang
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coxon and 8342 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Coxon Precise Industrial 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 Coxon Precise 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 Coxon Precise Industrial 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 Coxon Precise i.e., Coxon Precise and I Jang go up and down completely randomly.
Pair Corralation between Coxon Precise and I Jang
Assuming the 90 days trading horizon Coxon Precise Industrial is expected to under-perform the I Jang. In addition to that, Coxon Precise is 2.84 times more volatile than I Jang Industrial. It trades about -0.09 of its total potential returns per unit of risk. I Jang Industrial is currently generating about -0.01 per unit of volatility. If you would invest 8,840 in I Jang Industrial on September 23, 2024 and sell it today you would lose (50.00) from holding I Jang Industrial or give up 0.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Coxon Precise Industrial vs. I Jang Industrial
Performance |
Timeline |
Coxon Precise Industrial |
I Jang Industrial |
Coxon Precise and I Jang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coxon Precise and I Jang
The main advantage of trading using opposite Coxon Precise and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coxon Precise 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.Coxon Precise vs. Century Wind Power | Coxon Precise vs. Green World Fintech | Coxon Precise vs. Ingentec | Coxon Precise vs. Chaheng Precision Co |
I Jang vs. Castles Technology Co | I Jang vs. Gold Rain Enterprises | I Jang vs. Cipherlab Co | I Jang vs. Accton Technology Corp |
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.
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