Correlation Between Zinus and Taewoong Logistics
Can any of the company-specific risk be diversified away by investing in both Zinus and Taewoong Logistics 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 Zinus and Taewoong Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinus Inc and Taewoong Logistics CoLtd, you can compare the effects of market volatilities on Zinus and Taewoong Logistics 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 Zinus with a short position of Taewoong Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Taewoong Logistics.
Diversification Opportunities for Zinus and Taewoong Logistics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zinus and Taewoong is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Taewoong Logistics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taewoong Logistics CoLtd and Zinus 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 Zinus Inc are associated (or correlated) with Taewoong Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taewoong Logistics CoLtd has no effect on the direction of Zinus i.e., Zinus and Taewoong Logistics go up and down completely randomly.
Pair Corralation between Zinus and Taewoong Logistics
Assuming the 90 days trading horizon Zinus Inc is expected to generate 1.05 times more return on investment than Taewoong Logistics. However, Zinus is 1.05 times more volatile than Taewoong Logistics CoLtd. It trades about 0.08 of its potential returns per unit of risk. Taewoong Logistics CoLtd is currently generating about -0.01 per unit of risk. If you would invest 1,460,909 in Zinus Inc on September 25, 2024 and sell it today you would earn a total of 969,091 from holding Zinus Inc or generate 66.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zinus Inc vs. Taewoong Logistics CoLtd
Performance |
Timeline |
Zinus Inc |
Taewoong Logistics CoLtd |
Zinus and Taewoong Logistics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zinus and Taewoong Logistics
The main advantage of trading using opposite Zinus and Taewoong Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinus position performs unexpectedly, Taewoong Logistics 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 Taewoong Logistics will offset losses from the drop in Taewoong Logistics' long position.The idea behind Zinus Inc and Taewoong Logistics CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Taewoong Logistics vs. Eagle Veterinary Technology | Taewoong Logistics vs. Hwangkum Steel Technology | Taewoong Logistics vs. Dongbang Transport Logistics | Taewoong Logistics vs. INFINITT Healthcare 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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