Correlation Between Jinro Distillers and Samhyun
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and Samhyun 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 Samhyun 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 Samhyun, you can compare the effects of market volatilities on Jinro Distillers and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and Samhyun.
Diversification Opportunities for Jinro Distillers and Samhyun
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinro and Samhyun is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and Samhyun go up and down completely randomly.
Pair Corralation between Jinro Distillers and Samhyun
Assuming the 90 days trading horizon Jinro Distillers is expected to generate 9.54 times less return on investment than Samhyun. But when comparing it to its historical volatility, Jinro Distillers Co is 14.74 times less risky than Samhyun. It trades about 0.51 of its potential returns per unit of risk. Samhyun is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 666,000 in Samhyun on October 16, 2024 and sell it today you would earn a total of 358,000 from holding Samhyun or generate 53.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinro Distillers Co vs. Samhyun
Performance |
| Timeline |
| Jinro Distillers |
| Samhyun |
Jinro Distillers and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinro Distillers and Samhyun
The main advantage of trading using opposite Jinro Distillers and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.| Jinro Distillers vs. Dgb Financial | Jinro Distillers vs. Cloud Air CoLtd | Jinro Distillers vs. KakaoBank Corp | Jinro Distillers vs. Homecast CoLtd |
| Samhyun vs. NICE Information Service | Samhyun vs. SBI Investment KOREA | Samhyun vs. Jeong Moon Information | Samhyun 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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