Correlation Between FNSTech and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both FNSTech 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 FNSTech and Jinro Distillers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and Jinro Distillers Co, you can compare the effects of market volatilities on FNSTech 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 FNSTech with a short position of Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and Jinro Distillers.
Diversification Opportunities for FNSTech and Jinro Distillers
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FNSTech and Jinro is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech 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 FNSTech 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 FNSTech 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 FNSTech i.e., FNSTech and Jinro Distillers go up and down completely randomly.
Pair Corralation between FNSTech and Jinro Distillers
Assuming the 90 days trading horizon FNSTech Co is expected to generate 17.49 times more return on investment than Jinro Distillers. However, FNSTech is 17.49 times more volatile than Jinro Distillers Co. It trades about 0.3 of its potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.19 per unit of risk. If you would invest 843,000 in FNSTech Co on November 6, 2024 and sell it today you would earn a total of 211,000 from holding FNSTech Co or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
FNSTech Co vs. Jinro Distillers Co
Performance |
| Timeline |
| FNSTech |
| Jinro Distillers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FNSTech and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and Jinro Distillers
The main advantage of trading using opposite FNSTech and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech 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.| FNSTech vs. Daechang Steel Co | FNSTech vs. Insun Environment New | FNSTech vs. Wonil Special Steel | FNSTech vs. Finebesteel |
| Jinro Distillers vs. LG Display Co | Jinro Distillers vs. DB Financial Investment | Jinro Distillers vs. Daol Investment Securities | Jinro Distillers vs. Automobile Pc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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