Correlation Between Sungmoon Electronics and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics 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 Sungmoon Electronics and KIWI Media 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 KIWI Media Group, you can compare the effects of market volatilities on Sungmoon Electronics 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 Sungmoon Electronics with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and KIWI Media.
Diversification Opportunities for Sungmoon Electronics and KIWI Media
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sungmoon and KIWI is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics 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 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 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 Sungmoon Electronics i.e., Sungmoon Electronics and KIWI Media go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and KIWI Media
Assuming the 90 days trading horizon Sungmoon Electronics Co is expected to generate 0.53 times more return on investment than KIWI Media. However, Sungmoon Electronics Co is 1.9 times less risky than KIWI Media. It trades about 0.08 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.28 per unit of risk. If you would invest 453,000 in Sungmoon Electronics Co on November 7, 2024 and sell it today you would earn a total of 19,000 from holding Sungmoon Electronics Co or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Sungmoon Electronics Co vs. KIWI Media Group
Performance |
| Timeline |
| Sungmoon Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KIWI Media Group |
Sungmoon Electronics and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and KIWI Media
The main advantage of trading using opposite Sungmoon Electronics and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics 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.| Sungmoon Electronics vs. Global Standard Technology | Sungmoon Electronics vs. SS TECH | Sungmoon Electronics vs. Orbitech Co | Sungmoon Electronics vs. A Tech Solution Co |
| KIWI Media vs. INFINITT Healthcare Co | KIWI Media vs. UJU Electronics Co | KIWI Media vs. Hanwha Chemical Corp | KIWI Media vs. Dongbang Transport Logistics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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