Correlation Between Jinro Distillers and Heungkuk Metaltech
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Heungkuk Metaltech 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 Jinro Distillers and Heungkuk Metaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinro Distillers Co and Heungkuk Metaltech CoLtd, you can compare the effects of market volatilities on Jinro Distillers and Heungkuk Metaltech 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 Jinro Distillers with a short position of Heungkuk Metaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Heungkuk Metaltech.
Diversification Opportunities for Jinro Distillers and Heungkuk Metaltech
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinro and Heungkuk is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Heungkuk Metaltech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heungkuk Metaltech CoLtd and Jinro Distillers 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 Jinro Distillers Co are associated (or correlated) with Heungkuk Metaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heungkuk Metaltech CoLtd has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Heungkuk Metaltech go up and down completely randomly.
Pair Corralation between Jinro Distillers and Heungkuk Metaltech
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.33 times more return on investment than Heungkuk Metaltech. However, Jinro Distillers Co is 3.05 times less risky than Heungkuk Metaltech. It trades about 0.52 of its potential returns per unit of risk. Heungkuk Metaltech CoLtd is currently generating about 0.03 per unit of risk. If you would invest 1,607,794 in Jinro Distillers Co on October 14, 2024 and sell it today you would earn a total of 103,206 from holding Jinro Distillers Co or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. Heungkuk Metaltech CoLtd
Performance |
| Timeline |
| Jinro Distillers |
| Heungkuk Metaltech CoLtd |
Jinro Distillers and Heungkuk Metaltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Heungkuk Metaltech
The main advantage of trading using opposite Jinro Distillers and Heungkuk Metaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Heungkuk Metaltech 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 Heungkuk Metaltech will offset losses from the drop in Heungkuk Metaltech's long position.| Jinro Distillers vs. EV Advanced Material | Jinro Distillers vs. Daishin Information Communications | Jinro Distillers vs. Kolon Plastics | Jinro Distillers vs. Ssangyong Materials Corp |
| Heungkuk Metaltech vs. Ssangyong Materials Corp | Heungkuk Metaltech vs. LS Materials | Heungkuk Metaltech vs. iNtRON Biotechnology | Heungkuk Metaltech vs. Polaris Office Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| 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 |