Correlation Between Sungmoon Electronics and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Sungmoon Electronics and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and Iljin Display.
Diversification Opportunities for Sungmoon Electronics and Iljin Display
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sungmoon and Iljin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics Co and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Sungmoon Electronics i.e., Sungmoon Electronics and Iljin Display go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and Iljin Display
Assuming the 90 days trading horizon Sungmoon Electronics Co is expected to under-perform the Iljin Display. In addition to that, Sungmoon Electronics is 1.24 times more volatile than Iljin Display. It trades about -0.04 of its total potential returns per unit of risk. Iljin Display is currently generating about -0.04 per unit of volatility. If you would invest 110,000 in Iljin Display on August 29, 2024 and sell it today you would lose (24,300) from holding Iljin Display or give up 22.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungmoon Electronics Co vs. Iljin Display
Performance |
| Timeline |
| Sungmoon Electronics |
| Iljin Display |
Sungmoon Electronics and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and Iljin Display
The main advantage of trading using opposite Sungmoon Electronics and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Sungmoon Electronics vs. DAEDUCK ELECTRONICS CoLtd | Sungmoon Electronics vs. Iljin Display | Sungmoon Electronics vs. Busan Industrial Co | Sungmoon Electronics vs. Busan Ind |
| Iljin Display vs. LG Display Co | Iljin Display vs. Organic Special Pet | Iljin Display vs. Display Tech Co | Iljin Display vs. ABOV Semiconductor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |