Correlation Between Jinro Distillers and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Aprogen Healthcare 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 Aprogen Healthcare 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 Aprogen Healthcare Games, you can compare the effects of market volatilities on Jinro Distillers and Aprogen Healthcare 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Aprogen Healthcare.
Diversification Opportunities for Jinro Distillers and Aprogen Healthcare
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jinro and Aprogen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Jinro Distillers and Aprogen Healthcare
Assuming the 90 days trading horizon Jinro Distillers Co is expected to under-perform the Aprogen Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Jinro Distillers Co is 2.91 times less risky than Aprogen Healthcare. The stock trades about -0.13 of its potential returns per unit of risk. The Aprogen Healthcare Games is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 53,600 in Aprogen Healthcare Games on August 28, 2024 and sell it today you would lose (2,100) from holding Aprogen Healthcare Games or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Jinro Distillers |
| Aprogen Healthcare Games |
Jinro Distillers and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Aprogen Healthcare
The main advantage of trading using opposite Jinro Distillers and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Aprogen Healthcare 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Jinro Distillers vs. AptaBio Therapeutics | Jinro Distillers vs. Daewoo SBI SPAC | Jinro Distillers vs. Dream Security co | Jinro Distillers vs. Microfriend |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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