Correlation Between Sungmoon Electronics and CJ CheilJedang
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics and CJ CheilJedang 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 CJ CheilJedang 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 CJ CheilJedang Corp, you can compare the effects of market volatilities on Sungmoon Electronics and CJ CheilJedang 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 CJ CheilJedang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and CJ CheilJedang.
Diversification Opportunities for Sungmoon Electronics and CJ CheilJedang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sungmoon and 097955 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics Co and CJ CheilJedang Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ CheilJedang Corp 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 CJ CheilJedang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ CheilJedang Corp has no effect on the direction of Sungmoon Electronics i.e., Sungmoon Electronics and CJ CheilJedang go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and CJ CheilJedang
If you would invest (100.00) in CJ CheilJedang Corp on September 3, 2024 and sell it today you would earn a total of 100.00 from holding CJ CheilJedang Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sungmoon Electronics Co vs. CJ CheilJedang Corp
Performance |
| Timeline |
| Sungmoon Electronics |
| CJ CheilJedang Corp |
Sungmoon Electronics and CJ CheilJedang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and CJ CheilJedang
The main advantage of trading using opposite Sungmoon Electronics and CJ CheilJedang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics position performs unexpectedly, CJ CheilJedang 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 CJ CheilJedang will offset losses from the drop in CJ CheilJedang's long position.| Sungmoon Electronics vs. Korea Alcohol Industrial | Sungmoon Electronics vs. Jinro Distillers Co | Sungmoon Electronics vs. Taeyang Metal Industrial | Sungmoon Electronics vs. Heungkuk Metaltech CoLtd |
| CJ CheilJedang vs. Korea Information Communications | CJ CheilJedang vs. Nice Information Telecommunication | CJ CheilJedang vs. Alton Sports CoLtd | CJ CheilJedang vs. Kisan Telecom 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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