Correlation Between SungMoon Electronics and Kiwoom
Can any of the company-specific risk be diversified away by investing in both SungMoon Electronics and Kiwoom 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 SungMoon Electronics and Kiwoom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SungMoon Electronics Co and Kiwoom, you can compare the effects of market volatilities on SungMoon Electronics and Kiwoom 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 SungMoon Electronics with a short position of Kiwoom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SungMoon Electronics and Kiwoom.
Diversification Opportunities for SungMoon Electronics and Kiwoom
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SungMoon and Kiwoom is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SungMoon Electronics Co and Kiwoom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiwoom and SungMoon Electronics 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 SungMoon Electronics Co are associated (or correlated) with Kiwoom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiwoom has no effect on the direction of SungMoon Electronics i.e., SungMoon Electronics and Kiwoom go up and down completely randomly.
Pair Corralation between SungMoon Electronics and Kiwoom
Assuming the 90 days trading horizon SungMoon Electronics is expected to generate 1.01 times less return on investment than Kiwoom. In addition to that, SungMoon Electronics is 1.37 times more volatile than Kiwoom. It trades about 0.32 of its total potential returns per unit of risk. Kiwoom is currently generating about 0.44 per unit of volatility. If you would invest 11,240,000 in Kiwoom on November 3, 2024 and sell it today you would earn a total of 1,280,000 from holding Kiwoom or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SungMoon Electronics Co vs. Kiwoom
Performance |
| Timeline |
| SungMoon Electronics |
| Kiwoom |
SungMoon Electronics and Kiwoom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SungMoon Electronics and Kiwoom
The main advantage of trading using opposite SungMoon Electronics and Kiwoom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SungMoon Electronics position performs unexpectedly, Kiwoom 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 Kiwoom will offset losses from the drop in Kiwoom's long position.| SungMoon Electronics vs. Inzi Display CoLtd | SungMoon Electronics vs. Korea Air Svc | SungMoon Electronics vs. Playgram Co | SungMoon Electronics vs. Jeong Moon Information |
| Kiwoom vs. Ssangyong Information Communication | Kiwoom vs. SK Telecom Co | Kiwoom vs. Hyunwoo Industrial Co | Kiwoom vs. Hyundai Industrial 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |