Correlation Between Jinro Distillers and Handok Clean
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Handok Clean 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 Handok Clean 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 Handok Clean Tech, you can compare the effects of market volatilities on Jinro Distillers and Handok Clean 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 Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Handok Clean.
Diversification Opportunities for Jinro Distillers and Handok Clean
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinro and Handok is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech 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 Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Handok Clean go up and down completely randomly.
Pair Corralation between Jinro Distillers and Handok Clean
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.85 times more return on investment than Handok Clean. However, Jinro Distillers Co is 1.18 times less risky than Handok Clean. It trades about -0.02 of its potential returns per unit of risk. Handok Clean Tech is currently generating about -0.14 per unit of risk. If you would invest 1,725,000 in Jinro Distillers Co on September 2, 2024 and sell it today you would lose (23,000) from holding Jinro Distillers Co or give up 1.33% 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. Handok Clean Tech
Performance |
| Timeline |
| Jinro Distillers |
| Handok Clean Tech |
Jinro Distillers and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Handok Clean
The main advantage of trading using opposite Jinro Distillers and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean's long position.| Jinro Distillers vs. Korea Real Estate | Jinro Distillers vs. Korea Ratings Co | Jinro Distillers vs. IQuest Co | Jinro Distillers vs. Wonbang Tech Co |
| Handok Clean vs. Busan Industrial Co | Handok Clean vs. Busan Ind | Handok Clean vs. Mirae Asset Daewoo | Handok Clean vs. Finebesteel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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