Correlation Between AeroSpace Technology and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both AeroSpace 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 AeroSpace 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 AeroSpace Technology of and Jinro Distillers Co, you can compare the effects of market volatilities on AeroSpace 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 AeroSpace Technology with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and Jinro Distillers.
Diversification Opportunities for AeroSpace Technology and Jinro Distillers
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AeroSpace and Jinro is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers and AeroSpace 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 AeroSpace Technology of 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 AeroSpace Technology i.e., AeroSpace Technology and Jinro Distillers go up and down completely randomly.
Pair Corralation between AeroSpace Technology and Jinro Distillers
Assuming the 90 days trading horizon AeroSpace Technology of is expected to generate 3.51 times more return on investment than Jinro Distillers. However, AeroSpace Technology is 3.51 times more volatile than Jinro Distillers Co. It trades about 0.55 of its potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.32 per unit of risk. If you would invest 50,300 in AeroSpace Technology of on October 21, 2024 and sell it today you would earn a total of 9,600 from holding AeroSpace Technology of or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AeroSpace Technology of vs. Jinro Distillers Co
Performance |
| Timeline |
| AeroSpace Technology |
| Jinro Distillers |
AeroSpace Technology and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and Jinro Distillers
The main advantage of trading using opposite AeroSpace Technology and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace 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.| AeroSpace Technology vs. SM Entertainment Co | AeroSpace Technology vs. Phoenix Materials Co | AeroSpace Technology vs. BGF Retail Co | AeroSpace Technology vs. LS Materials |
| Jinro Distillers vs. LG Household Healthcare | Jinro Distillers vs. Anam Electronics Co | Jinro Distillers vs. Korea Electronic Certification | Jinro Distillers vs. Hana Technology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |