Correlation Between Zinus and Grand Korea
Can any of the company-specific risk be diversified away by investing in both Zinus and Grand Korea 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 Zinus and Grand Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinus Inc and Grand Korea Leisure, you can compare the effects of market volatilities on Zinus and Grand Korea 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 Zinus with a short position of Grand Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Grand Korea.
Diversification Opportunities for Zinus and Grand Korea
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zinus and Grand is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Grand Korea Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Korea Leisure and Zinus 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 Zinus Inc are associated (or correlated) with Grand Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Korea Leisure has no effect on the direction of Zinus i.e., Zinus and Grand Korea go up and down completely randomly.
Pair Corralation between Zinus and Grand Korea
Assuming the 90 days trading horizon Zinus Inc is expected to generate 1.41 times more return on investment than Grand Korea. However, Zinus is 1.41 times more volatile than Grand Korea Leisure. It trades about 0.0 of its potential returns per unit of risk. Grand Korea Leisure is currently generating about -0.04 per unit of risk. If you would invest 2,777,715 in Zinus Inc on November 5, 2024 and sell it today you would lose (637,715) from holding Zinus Inc or give up 22.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinus Inc vs. Grand Korea Leisure
Performance |
| Timeline |
| Zinus Inc |
| Grand Korea Leisure |
Zinus and Grand Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinus and Grand Korea
The main advantage of trading using opposite Zinus and Grand Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinus position performs unexpectedly, Grand Korea 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 Grand Korea will offset losses from the drop in Grand Korea's long position.| Zinus vs. Cuckoo Electronics Co | Zinus vs. Pan Entertainment Co | Zinus vs. LEENO Industrial | Zinus vs. Eagon Industrial Co |
| Grand Korea vs. Seoul Food Industrial | Grand Korea vs. CJ Seafood Corp | Grand Korea vs. SungMoon Electronics Co | Grand Korea vs. ABOV Semiconductor Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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