Correlation Between PJ Metal and Taewoong Logistics

Can any of the company-specific risk be diversified away by investing in both PJ Metal and Taewoong Logistics 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 PJ Metal and Taewoong Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PJ Metal Co and Taewoong Logistics CoLtd, you can compare the effects of market volatilities on PJ Metal and Taewoong Logistics 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 PJ Metal with a short position of Taewoong Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PJ Metal and Taewoong Logistics.

Diversification Opportunities for PJ Metal and Taewoong Logistics

0.0

Correlation Coefficient

PJ Metal  Taewoong Logistics

Pay attention - limited upside

The 3 months correlation between 128660 and Taewoong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PJ Metal Co and Taewoong Logistics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taewoong Logistics CoLtd and PJ Metal 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 PJ Metal Co are associated (or correlated) with Taewoong Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taewoong Logistics CoLtd has no effect on the direction of PJ Metal i.e., PJ Metal and Taewoong Logistics go up and down completely randomly.

Pair Corralation between PJ Metal and Taewoong Logistics

If you would invest  0.00  in Taewoong Logistics CoLtd on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Taewoong Logistics CoLtd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

PJ Metal Co  vs.  Taewoong Logistics CoLtd

PJ Metal

Risk-Adjusted Performance

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Very Weak

Over the last 90 days PJ Metal Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Taewoong Logistics CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taewoong Logistics CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Taewoong Logistics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PJ Metal and Taewoong Logistics

The main advantage of trading using opposite PJ Metal and Taewoong Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PJ Metal position performs unexpectedly, Taewoong Logistics 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 Taewoong Logistics will offset losses from the drop in Taewoong Logistics' long position.

The idea behind PJ Metal Co and Taewoong Logistics CoLtd 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.