Correlation Between Jinro Distillers and Kyeryong Construction
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Kyeryong Construction 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 Kyeryong Construction 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 Kyeryong Construction Industrial, you can compare the effects of market volatilities on Jinro Distillers and Kyeryong Construction 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 Kyeryong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Kyeryong Construction.
Diversification Opportunities for Jinro Distillers and Kyeryong Construction
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinro and Kyeryong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Kyeryong Construction Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyeryong Construction 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 Kyeryong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyeryong Construction has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Kyeryong Construction go up and down completely randomly.
Pair Corralation between Jinro Distillers and Kyeryong Construction
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.35 times more return on investment than Kyeryong Construction. However, Jinro Distillers Co is 2.85 times less risky than Kyeryong Construction. It trades about 0.43 of its potential returns per unit of risk. Kyeryong Construction Industrial is currently generating about -0.24 per unit of risk. If you would invest 1,657,857 in Jinro Distillers Co on October 18, 2024 and sell it today you would earn a total of 64,143 from holding Jinro Distillers Co or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. Kyeryong Construction Industri
Performance |
| Timeline |
| Jinro Distillers |
| Kyeryong Construction |
Jinro Distillers and Kyeryong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Kyeryong Construction
The main advantage of trading using opposite Jinro Distillers and Kyeryong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Kyeryong Construction 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 Kyeryong Construction will offset losses from the drop in Kyeryong Construction's long position.| Jinro Distillers vs. LG Household Healthcare | Jinro Distillers vs. Daiyang Metal Co | Jinro Distillers vs. Chorokbaem Healthcare Co | Jinro Distillers vs. Choil Aluminum |
| Kyeryong Construction vs. Aprogen Healthcare Games | Kyeryong Construction vs. Jinro Distillers Co | Kyeryong Construction vs. Innowireless Co | Kyeryong Construction vs. SKONEC Entertainment 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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