Correlation Between Jinro Distillers and TJ Media
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and TJ Media 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 TJ Media 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 TJ media Co, you can compare the effects of market volatilities on Jinro Distillers and TJ Media 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 TJ Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and TJ Media.
Diversification Opportunities for Jinro Distillers and TJ Media
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinro and 032540 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and TJ media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJ media 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 TJ Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJ media has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and TJ Media go up and down completely randomly.
Pair Corralation between Jinro Distillers and TJ Media
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 1.0 times more return on investment than TJ Media. However, Jinro Distillers is 1.0 times more volatile than TJ media Co. It trades about -0.17 of its potential returns per unit of risk. TJ media Co is currently generating about -0.36 per unit of risk. If you would invest 1,770,000 in Jinro Distillers Co on August 27, 2024 and sell it today you would lose (69,000) from holding Jinro Distillers Co or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. TJ media Co
Performance |
| Timeline |
| Jinro Distillers |
| TJ media |
Jinro Distillers and TJ Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and TJ Media
The main advantage of trading using opposite Jinro Distillers and TJ Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, TJ Media 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 TJ Media will offset losses from the drop in TJ Media's long position.| Jinro Distillers vs. AptaBio Therapeutics | Jinro Distillers vs. Daewoo SBI SPAC | Jinro Distillers vs. Dream Security co | Jinro Distillers vs. Microfriend |
| TJ Media vs. Daehan Steel | TJ Media vs. Samyang Foods Co | TJ Media vs. Miwon Chemical | TJ Media 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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