Correlation Between JSL Construction and YeaShin International

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Can any of the company-specific risk be diversified away by investing in both JSL Construction and YeaShin International 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 JSL Construction and YeaShin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL Construction Development and YeaShin International Development, you can compare the effects of market volatilities on JSL Construction and YeaShin International 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 JSL Construction with a short position of YeaShin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL Construction and YeaShin International.

Diversification Opportunities for JSL Construction and YeaShin International

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between JSL and YeaShin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding JSL Construction Development and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International and JSL Construction 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 JSL Construction Development are associated (or correlated) with YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of JSL Construction i.e., JSL Construction and YeaShin International go up and down completely randomly.

Pair Corralation between JSL Construction and YeaShin International

Assuming the 90 days trading horizon JSL Construction is expected to generate 5.26 times less return on investment than YeaShin International. But when comparing it to its historical volatility, JSL Construction Development is 1.05 times less risky than YeaShin International. It trades about 0.02 of its potential returns per unit of risk. YeaShin International Development is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,927  in YeaShin International Development on September 19, 2024 and sell it today you would earn a total of  133.00  from holding YeaShin International Development or generate 4.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

JSL Construction Development  vs.  YeaShin International Developm

 Performance 
       Timeline  
JSL Construction Dev 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JSL Construction Development has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
YeaShin International 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in YeaShin International Development are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, YeaShin International showed solid returns over the last few months and may actually be approaching a breakup point.

JSL Construction and YeaShin International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JSL Construction and YeaShin International

The main advantage of trading using opposite JSL Construction and YeaShin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL Construction position performs unexpectedly, YeaShin International 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 YeaShin International will offset losses from the drop in YeaShin International's long position.
The idea behind JSL Construction Development and YeaShin International Development 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.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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