Correlation Between Power Wind and I Jang
Can any of the company-specific risk be diversified away by investing in both Power Wind 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 Power Wind and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Wind Health and I Jang Industrial, you can compare the effects of market volatilities on Power Wind 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 Power Wind with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Wind and I Jang.
Diversification Opportunities for Power Wind and I Jang
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Power and 8342 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Power Wind Health 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 Power Wind 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 Power Wind Health 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 Power Wind i.e., Power Wind and I Jang go up and down completely randomly.
Pair Corralation between Power Wind and I Jang
Assuming the 90 days trading horizon Power Wind Health is expected to generate 2.26 times more return on investment than I Jang. However, Power Wind is 2.26 times more volatile than I Jang Industrial. It trades about 0.13 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 11,150 in Power Wind Health on December 29, 2024 and sell it today you would earn a total of 1,650 from holding Power Wind Health or generate 14.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Power Wind Health vs. I Jang Industrial
Performance |
Timeline |
Power Wind Health |
I Jang Industrial |
Power Wind and I Jang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Power Wind and I Jang
The main advantage of trading using opposite Power Wind and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Wind 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.Power Wind vs. Sunny Friend Environmental | Power Wind vs. Cleanaway Co | Power Wind vs. Charoen Pokphand Enterprise | Power Wind vs. TTET Union Corp |
I Jang vs. Tainet Communication System | I Jang vs. Grand Ocean Retail | I Jang vs. Chinese Maritime Transport | I Jang vs. Apacer Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |