Correlation Between Daiyang Metal and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Daiyang Metal and Jinro Distillers 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 Daiyang Metal and Jinro Distillers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daiyang Metal Co and Jinro Distillers Co, you can compare the effects of market volatilities on Daiyang Metal and Jinro Distillers 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 Daiyang Metal with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daiyang Metal and Jinro Distillers.
Diversification Opportunities for Daiyang Metal and Jinro Distillers
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Daiyang and Jinro is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Daiyang Metal Co and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers and Daiyang 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 Daiyang Metal Co are associated (or correlated) with Jinro Distillers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinro Distillers has no effect on the direction of Daiyang Metal i.e., Daiyang Metal and Jinro Distillers go up and down completely randomly.
Pair Corralation between Daiyang Metal and Jinro Distillers
Assuming the 90 days trading horizon Daiyang Metal Co is expected to under-perform the Jinro Distillers. In addition to that, Daiyang Metal is 3.35 times more volatile than Jinro Distillers Co. It trades about -0.12 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.03 per unit of volatility. If you would invest 1,689,628 in Jinro Distillers Co on October 18, 2024 and sell it today you would earn a total of 32,372 from holding Jinro Distillers Co or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daiyang Metal Co vs. Jinro Distillers Co
Performance |
| Timeline |
| Daiyang Metal |
| Jinro Distillers |
Daiyang Metal and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daiyang Metal and Jinro Distillers
The main advantage of trading using opposite Daiyang Metal and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daiyang Metal position performs unexpectedly, Jinro Distillers 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 Jinro Distillers will offset losses from the drop in Jinro Distillers' long position.| Daiyang Metal vs. Jeil Steel Mfg | Daiyang Metal vs. Han Kook Steel | Daiyang Metal vs. Fine Besteel Co | Daiyang Metal vs. Koh Young Technology |
| Jinro Distillers vs. LG Household Healthcare | Jinro Distillers vs. Daiyang Metal Co | Jinro Distillers vs. Chorokbaem Healthcare Co | Jinro Distillers vs. Choil Aluminum |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| 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 | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges |