Correlation Between Jinro Distillers and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Jinro Distillers and KIWI Media 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 Jinro Distillers and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinro Distillers Co and KIWI Media Group, you can compare the effects of market volatilities on Jinro Distillers and KIWI Media 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 Jinro Distillers with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinro Distillers and KIWI Media.
Diversification Opportunities for Jinro Distillers and KIWI Media
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinro and KIWI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jinro Distillers Co and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Jinro Distillers 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 Jinro Distillers Co are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Jinro Distillers i.e., Jinro Distillers and KIWI Media go up and down completely randomly.
Pair Corralation between Jinro Distillers and KIWI Media
Assuming the 90 days trading horizon Jinro Distillers Co is expected to generate 0.24 times more return on investment than KIWI Media. However, Jinro Distillers Co is 4.12 times less risky than KIWI Media. It trades about 0.12 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.15 per unit of risk. If you would invest 1,480,711 in Jinro Distillers Co on October 8, 2024 and sell it today you would earn a total of 229,289 from holding Jinro Distillers Co or generate 15.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jinro Distillers Co vs. KIWI Media Group
Performance |
Timeline |
Jinro Distillers |
KIWI Media Group |
Jinro Distillers and KIWI Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinro Distillers and KIWI Media
The main advantage of trading using opposite Jinro Distillers and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinro Distillers position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.Jinro Distillers vs. Korea Information Communications | Jinro Distillers vs. Handok Clean Tech | Jinro Distillers vs. Hanjin Transportation Co | Jinro Distillers vs. Nice Information Telecommunication |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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