Correlation Between DongWon Development and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both DongWon Development 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 DongWon Development and Jinro Distillers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DongWon Development CoLtd and Jinro Distillers Co, you can compare the effects of market volatilities on DongWon Development 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 DongWon Development with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of DongWon Development and Jinro Distillers.
Diversification Opportunities for DongWon Development and Jinro Distillers
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DongWon and Jinro is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DongWon Development CoLtd and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers and DongWon Development 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 DongWon Development CoLtd 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 DongWon Development i.e., DongWon Development and Jinro Distillers go up and down completely randomly.
Pair Corralation between DongWon Development and Jinro Distillers
Assuming the 90 days trading horizon DongWon Development CoLtd is expected to under-perform the Jinro Distillers. In addition to that, DongWon Development is 1.02 times more volatile than Jinro Distillers Co. It trades about -0.31 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about -0.11 per unit of volatility. If you would invest 1,770,000 in Jinro Distillers Co on August 29, 2024 and sell it today you would lose (52,000) from holding Jinro Distillers Co or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DongWon Development CoLtd vs. Jinro Distillers Co
Performance |
| Timeline |
| DongWon Development CoLtd |
| Jinro Distillers |
DongWon Development and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DongWon Development and Jinro Distillers
The main advantage of trading using opposite DongWon Development and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DongWon Development 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.| DongWon Development vs. Dongjin Semichem Co | DongWon Development vs. Geumhwa Plant Service | DongWon Development vs. Jinro Distillers Co | DongWon Development vs. CJ ENM |
| Jinro Distillers vs. Samsung Electronics Co | Jinro Distillers vs. Samsung Electronics Co | Jinro Distillers vs. Hyundai Motor Co | Jinro Distillers vs. Hyundai Motor |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |