Correlation Between Sungmoon Electronics and Kyung In
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics and Kyung In 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 Kyung In 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 Kyung In Synthetic Corp, you can compare the effects of market volatilities on Sungmoon Electronics and Kyung In 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 Kyung In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and Kyung In.
Diversification Opportunities for Sungmoon Electronics and Kyung In
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sungmoon and Kyung is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics Co and Kyung In Synthetic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung In Synthetic 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 Kyung In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung In Synthetic has no effect on the direction of Sungmoon Electronics i.e., Sungmoon Electronics and Kyung In go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and Kyung In
Assuming the 90 days trading horizon Sungmoon Electronics is expected to generate 1.74 times less return on investment than Kyung In. In addition to that, Sungmoon Electronics is 3.41 times more volatile than Kyung In Synthetic Corp. It trades about 0.03 of its total potential returns per unit of risk. Kyung In Synthetic Corp is currently generating about 0.17 per unit of volatility. If you would invest 271,500 in Kyung In Synthetic Corp on October 31, 2024 and sell it today you would earn a total of 9,500 from holding Kyung In Synthetic Corp or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungmoon Electronics Co vs. Kyung In Synthetic Corp
Performance |
| Timeline |
| Sungmoon Electronics |
| Kyung In Synthetic |
Sungmoon Electronics and Kyung In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and Kyung In
The main advantage of trading using opposite Sungmoon Electronics and Kyung In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics position performs unexpectedly, Kyung In 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 Kyung In will offset losses from the drop in Kyung In's long position.| Sungmoon Electronics vs. NH Investment Securities | Sungmoon Electronics vs. Golden Bridge Investment | Sungmoon Electronics vs. CU Medical Systems | Sungmoon Electronics vs. Clean Science co |
| Kyung In vs. LG Household Healthcare | Kyung In vs. Lotte Data Communication | Kyung In vs. Korea Information Engineering | Kyung In vs. Hannong Chemicals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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