Correlation Between Pureun Mutual and SungMoon Electronics
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and SungMoon Electronics 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 Pureun Mutual and SungMoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and SungMoon Electronics Co, you can compare the effects of market volatilities on Pureun Mutual and SungMoon Electronics 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 Pureun Mutual with a short position of SungMoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and SungMoon Electronics.
Diversification Opportunities for Pureun Mutual and SungMoon Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pureun and SungMoon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and SungMoon Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SungMoon Electronics and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with SungMoon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SungMoon Electronics has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and SungMoon Electronics go up and down completely randomly.
Pair Corralation between Pureun Mutual and SungMoon Electronics
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to under-perform the SungMoon Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Pureun Mutual Savings is 3.98 times less risky than SungMoon Electronics. The stock trades about -0.45 of its potential returns per unit of risk. The SungMoon Electronics Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 110,600 in SungMoon Electronics Co on November 7, 2024 and sell it today you would earn a total of 7,900 from holding SungMoon Electronics Co or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Pureun Mutual Savings vs. SungMoon Electronics Co
Performance |
| Timeline |
| Pureun Mutual Savings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SungMoon Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pureun Mutual and SungMoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and SungMoon Electronics
The main advantage of trading using opposite Pureun Mutual and SungMoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, SungMoon Electronics 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 SungMoon Electronics will offset losses from the drop in SungMoon Electronics' long position.| Pureun Mutual vs. Aekyung Petrochemical Co | Pureun Mutual vs. Dongbang Transport Logistics | Pureun Mutual vs. TK Chemical | Pureun Mutual vs. Korea Petro Chemical |
| SungMoon Electronics vs. HB Technology TD | SungMoon Electronics vs. Korea Information Communications | SungMoon Electronics vs. Samsung Life Insurance | SungMoon Electronics vs. Samick Musical Instruments |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |