Correlation Between Jinro Distillers and PanGen Biotech
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and PanGen Biotech 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 PanGen Biotech 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 PanGen Biotech, you can compare the effects of market volatilities on Jinro Distillers and PanGen Biotech 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 PanGen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and PanGen Biotech.
Diversification Opportunities for Jinro Distillers and PanGen Biotech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinro and PanGen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and PanGen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PanGen Biotech 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 PanGen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PanGen Biotech has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and PanGen Biotech go up and down completely randomly.
Pair Corralation between Jinro Distillers and PanGen Biotech
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.17 times more return on investment than PanGen Biotech. However, Jinro Distillers Co is 5.87 times less risky than PanGen Biotech. It trades about 0.26 of its potential returns per unit of risk. PanGen Biotech is currently generating about -0.36 per unit of risk. If you would invest 1,680,000 in Jinro Distillers Co on November 3, 2024 and sell it today you would earn a total of 40,000 from holding Jinro Distillers Co or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. PanGen Biotech
Performance |
| Timeline |
| Jinro Distillers |
| PanGen Biotech |
Jinro Distillers and PanGen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and PanGen Biotech
The main advantage of trading using opposite Jinro Distillers and PanGen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, PanGen Biotech 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 PanGen Biotech will offset losses from the drop in PanGen Biotech's long position.| Jinro Distillers vs. Daewoo Electronic Components | Jinro Distillers vs. Sungmoon Electronics Co | Jinro Distillers vs. Cuckoo Electronics Co | Jinro Distillers vs. EBEST Investment Securities |
| PanGen Biotech vs. Union Materials Corp | PanGen Biotech vs. TOPMATERIAL LTD | PanGen Biotech vs. BGF Retail Co | PanGen Biotech vs. Hyundai Engineering Plastics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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