Correlation Between Dragonfly and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Dragonfly and Jinro Distillers 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 Dragonfly and Jinro Distillers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dragonfly GF Co and Jinro Distillers Co, you can compare the effects of market volatilities on Dragonfly and Jinro Distillers 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 Dragonfly with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dragonfly and Jinro Distillers.
Diversification Opportunities for Dragonfly and Jinro Distillers
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dragonfly and Jinro is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Dragonfly GF Co and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers and Dragonfly 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 Dragonfly GF Co are associated (or correlated) with Jinro Distillers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinro Distillers has no effect on the direction of Dragonfly i.e., Dragonfly and Jinro Distillers go up and down completely randomly.
Pair Corralation between Dragonfly and Jinro Distillers
Assuming the 90 days trading horizon Dragonfly GF Co is expected to under-perform the Jinro Distillers. In addition to that, Dragonfly is 5.74 times more volatile than Jinro Distillers Co. It trades about -0.05 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.03 per unit of volatility. If you would invest 1,540,366 in Jinro Distillers Co on September 12, 2024 and sell it today you would earn a total of 102,634 from holding Jinro Distillers Co or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.72% |
| Values | Daily Returns |
Dragonfly GF Co vs. Jinro Distillers Co
Performance |
| Timeline |
| Dragonfly GF |
| Jinro Distillers |
Dragonfly and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dragonfly and Jinro Distillers
The main advantage of trading using opposite Dragonfly and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dragonfly position performs unexpectedly, Jinro Distillers 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 Jinro Distillers will offset losses from the drop in Jinro Distillers' long position.| Dragonfly vs. Samsung Electronics Co | Dragonfly vs. Samsung Electronics Co | Dragonfly vs. LG Energy Solution | Dragonfly vs. SK Hynix |
| Jinro Distillers vs. Korea New Network | Jinro Distillers vs. ICD Co | Jinro Distillers vs. DYPNF CoLtd | Jinro Distillers vs. Solution Advanced Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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