Correlation Between Sungmoon Electronics and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Sungmoon Electronics and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on Sungmoon Electronics and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungmoon Electronics and Jb Financial.
Diversification Opportunities for Sungmoon Electronics and Jb Financial
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sungmoon and 175330 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sungmoon Electronics Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Sungmoon Electronics i.e., Sungmoon Electronics and Jb Financial go up and down completely randomly.
Pair Corralation between Sungmoon Electronics and Jb Financial
Assuming the 90 days trading horizon Sungmoon Electronics Co is expected to under-perform the Jb Financial. In addition to that, Sungmoon Electronics is 1.81 times more volatile than Jb Financial. It trades about -0.01 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.06 per unit of volatility. If you would invest 985,269 in Jb Financial on October 11, 2024 and sell it today you would earn a total of 640,731 from holding Jb Financial or generate 65.03% 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. Jb Financial
Performance |
| Timeline |
| Sungmoon Electronics |
| Jb Financial |
Sungmoon Electronics and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungmoon Electronics and Jb Financial
The main advantage of trading using opposite Sungmoon Electronics and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungmoon Electronics position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial'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 |
| Jb Financial vs. Vissem Electronics Co | Jb Financial vs. Sungmoon Electronics Co | Jb Financial vs. Samsung Electronics Co | Jb Financial vs. Korea Electronic Certification |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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