Correlation Between Sungmoon Electronics and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics and Pureun Mutual 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 Pureun Mutual 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 Pureun Mutual Savings, you can compare the effects of market volatilities on Sungmoon Electronics and Pureun Mutual 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 Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and Pureun Mutual.
Diversification Opportunities for Sungmoon Electronics and Pureun Mutual
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sungmoon and Pureun is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings 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 Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Sungmoon Electronics i.e., Sungmoon Electronics and Pureun Mutual go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and Pureun Mutual
Assuming the 90 days trading horizon Sungmoon Electronics Co is expected to generate 1.33 times more return on investment than Pureun Mutual. However, Sungmoon Electronics is 1.33 times more volatile than Pureun Mutual Savings. It trades about 0.2 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about 0.1 per unit of risk. If you would invest 392,000 in Sungmoon Electronics Co on October 11, 2024 and sell it today you would earn a total of 75,500 from holding Sungmoon Electronics Co or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungmoon Electronics Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Sungmoon Electronics |
| Pureun Mutual Savings |
Sungmoon Electronics and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and Pureun Mutual
The main advantage of trading using opposite Sungmoon Electronics and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Sungmoon Electronics vs. Hanil Chemical Ind | Sungmoon Electronics vs. Kg Chemical | Sungmoon Electronics vs. SK Chemicals Co | Sungmoon Electronics vs. Daejung Chemicals Metals |
| Pureun Mutual vs. Daewoo Electronic Components | Pureun Mutual vs. Samsung Life Insurance | Pureun Mutual vs. Sungmoon Electronics Co | Pureun Mutual vs. UJU Electronics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |