Correlation Between Jinro Distillers and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting, you can compare the effects of market volatilities on Jinro Distillers and Taegu Broadcasting 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 Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Taegu Broadcasting.
Diversification Opportunities for Jinro Distillers and Taegu Broadcasting
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinro and Taegu is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting 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 Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between Jinro Distillers and Taegu Broadcasting
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.61 times more return on investment than Taegu Broadcasting. However, Jinro Distillers Co is 1.63 times less risky than Taegu Broadcasting. It trades about -0.02 of its potential returns per unit of risk. Taegu Broadcasting is currently generating about -0.02 per unit of risk. If you would invest 1,893,360 in Jinro Distillers Co on October 27, 2024 and sell it today you would lose (173,360) from holding Jinro Distillers Co or give up 9.16% 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. Taegu Broadcasting
Performance |
| Timeline |
| Jinro Distillers |
| Taegu Broadcasting |
Jinro Distillers and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Taegu Broadcasting
The main advantage of trading using opposite Jinro Distillers and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| Jinro Distillers vs. Sung Bo Chemicals | Jinro Distillers vs. Korea Industrial Co | Jinro Distillers vs. PJ Metal Co | Jinro Distillers vs. Daiyang Metal Co |
| Taegu Broadcasting vs. Bookook Steel | Taegu Broadcasting vs. Seah Steel Corp | Taegu Broadcasting vs. Wonil Special Steel | Taegu Broadcasting vs. Homecast CoLtd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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