Correlation Between MSC and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both MSC and Jeong Moon 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 MSC and Jeong Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSC Co and Jeong Moon Information, you can compare the effects of market volatilities on MSC and Jeong Moon 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 MSC with a short position of Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSC and Jeong Moon.
Diversification Opportunities for MSC and Jeong Moon
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MSC and Jeong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MSC Co and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information and MSC 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 MSC Co are associated (or correlated) with Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of MSC i.e., MSC and Jeong Moon go up and down completely randomly.
Pair Corralation between MSC and Jeong Moon
Assuming the 90 days trading horizon MSC Co is expected to generate 1.56 times more return on investment than Jeong Moon. However, MSC is 1.56 times more volatile than Jeong Moon Information. It trades about 0.01 of its potential returns per unit of risk. Jeong Moon Information is currently generating about -0.03 per unit of risk. If you would invest 560,164 in MSC Co on September 1, 2024 and sell it today you would lose (4,164) from holding MSC Co or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
MSC Co vs. Jeong Moon Information
Performance |
| Timeline |
| MSC Co |
| Jeong Moon Information |
MSC and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSC and Jeong Moon
The main advantage of trading using opposite MSC and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSC position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| MSC vs. Jeong Moon Information | MSC vs. Daou Data Corp | MSC vs. Ssangyong Information Communication | MSC vs. SK Telecom Co |
| Jeong Moon vs. Dongsin Engineering Construction | Jeong Moon vs. Doosan Fuel Cell | Jeong Moon vs. Daishin Balance 1 | Jeong Moon vs. Total Soft Bank |
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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