Correlation Between Jinro Distillers and SHINWON STRUCTION
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and SHINWON STRUCTION 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 SHINWON STRUCTION 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 SHINWON STRUCTION COMPANY, you can compare the effects of market volatilities on Jinro Distillers and SHINWON STRUCTION 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 SHINWON STRUCTION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and SHINWON STRUCTION.
Diversification Opportunities for Jinro Distillers and SHINWON STRUCTION
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinro and SHINWON is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and SHINWON STRUCTION COMPANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHINWON STRUCTION PANY 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 SHINWON STRUCTION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHINWON STRUCTION PANY has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and SHINWON STRUCTION go up and down completely randomly.
Pair Corralation between Jinro Distillers and SHINWON STRUCTION
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.29 times more return on investment than SHINWON STRUCTION. However, Jinro Distillers Co is 3.5 times less risky than SHINWON STRUCTION. It trades about -0.04 of its potential returns per unit of risk. SHINWON STRUCTION COMPANY is currently generating about -0.02 per unit of risk. If you would invest 2,117,605 in Jinro Distillers Co on August 24, 2024 and sell it today you would lose (416,605) from holding Jinro Distillers Co or give up 19.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinro Distillers Co vs. SHINWON STRUCTION COMPANY
Performance |
| Timeline |
| Jinro Distillers |
| SHINWON STRUCTION PANY |
Jinro Distillers and SHINWON STRUCTION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and SHINWON STRUCTION
The main advantage of trading using opposite Jinro Distillers and SHINWON STRUCTION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, SHINWON STRUCTION 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 SHINWON STRUCTION will offset losses from the drop in SHINWON STRUCTION's long position.| Jinro Distillers vs. AptaBio Therapeutics | Jinro Distillers vs. Daewoo SBI SPAC | Jinro Distillers vs. Dream Security co | Jinro Distillers vs. Microfriend |
| SHINWON STRUCTION vs. Ssangyong Information Communication | SHINWON STRUCTION vs. Sangsin Energy Display | SHINWON STRUCTION vs. InnoTherapy | SHINWON STRUCTION vs. Jinro Distillers 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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