Correlation Between Asia Technology and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Asia Technology 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 Asia Technology and Jinro Distillers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Technology Co and Jinro Distillers Co, you can compare the effects of market volatilities on Asia Technology 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 Asia Technology with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Technology and Jinro Distillers.
Diversification Opportunities for Asia Technology and Jinro Distillers
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asia and Jinro is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Asia Technology 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 Asia Technology 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 Asia Technology 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 Asia Technology i.e., Asia Technology and Jinro Distillers go up and down completely randomly.
Pair Corralation between Asia Technology and Jinro Distillers
Assuming the 90 days trading horizon Asia Technology Co is expected to under-perform the Jinro Distillers. In addition to that, Asia Technology is 1.93 times more volatile than Jinro Distillers Co. It trades about -0.16 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.15 per unit of volatility. If you would invest 1,638,602 in Jinro Distillers Co on October 30, 2024 and sell it today you would earn a total of 81,398 from holding Jinro Distillers Co or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Technology Co vs. Jinro Distillers Co
Performance |
| Timeline |
| Asia Technology |
| Jinro Distillers |
Asia Technology and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Technology and Jinro Distillers
The main advantage of trading using opposite Asia Technology and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Technology 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.| Asia Technology vs. Samsung Publishing Co | Asia Technology vs. Polaris Office Corp | Asia Technology vs. Daesung Hi Tech Co | Asia Technology vs. Cuckoo Homesys Co |
| Jinro Distillers vs. Foodnamoo | Jinro Distillers vs. Seoul Food Industrial | Jinro Distillers vs. Sungmoon Electronics Co | Jinro Distillers vs. Anam Electronics 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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