Correlation Between Jinro Distillers and Seoyon Topmetal
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Seoyon Topmetal 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 Seoyon Topmetal 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 Seoyon Topmetal Co, you can compare the effects of market volatilities on Jinro Distillers and Seoyon Topmetal 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 Seoyon Topmetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Seoyon Topmetal.
Diversification Opportunities for Jinro Distillers and Seoyon Topmetal
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinro and Seoyon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Seoyon Topmetal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoyon Topmetal 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 Seoyon Topmetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoyon Topmetal has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Seoyon Topmetal go up and down completely randomly.
Pair Corralation between Jinro Distillers and Seoyon Topmetal
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.46 times more return on investment than Seoyon Topmetal. However, Jinro Distillers Co is 2.16 times less risky than Seoyon Topmetal. It trades about 0.0 of its potential returns per unit of risk. Seoyon Topmetal Co is currently generating about -0.01 per unit of risk. If you would invest 1,792,688 in Jinro Distillers Co on October 16, 2024 and sell it today you would lose (72,688) from holding Jinro Distillers Co or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. Seoyon Topmetal Co
Performance |
| Timeline |
| Jinro Distillers |
| Seoyon Topmetal |
Jinro Distillers and Seoyon Topmetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Seoyon Topmetal
The main advantage of trading using opposite Jinro Distillers and Seoyon Topmetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Seoyon Topmetal 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 Seoyon Topmetal will offset losses from the drop in Seoyon Topmetal's long position.| Jinro Distillers vs. Dgb Financial | Jinro Distillers vs. Cloud Air CoLtd | Jinro Distillers vs. KakaoBank Corp | Jinro Distillers vs. Homecast CoLtd |
| Seoyon Topmetal vs. Jinro Distillers Co | Seoyon Topmetal vs. Nature and Environment | Seoyon Topmetal vs. RF Materials Co | Seoyon Topmetal vs. LAKE MATERIALS LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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