Correlation Between Jeong Moon and Shinil Electronics
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and Shinil Electronics 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 Jeong Moon and Shinil Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeong Moon Information and Shinil Electronics Co, you can compare the effects of market volatilities on Jeong Moon and Shinil Electronics 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 Jeong Moon with a short position of Shinil Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Shinil Electronics.
Diversification Opportunities for Jeong Moon and Shinil Electronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeong and Shinil is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and Shinil Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinil Electronics and Jeong Moon 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 Jeong Moon Information are associated (or correlated) with Shinil Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinil Electronics has no effect on the direction of Jeong Moon i.e., Jeong Moon and Shinil Electronics go up and down completely randomly.
Pair Corralation between Jeong Moon and Shinil Electronics
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the Shinil Electronics. In addition to that, Jeong Moon is 1.1 times more volatile than Shinil Electronics Co. It trades about -0.21 of its total potential returns per unit of risk. Shinil Electronics Co is currently generating about 0.0 per unit of volatility. If you would invest 142,900 in Shinil Electronics Co on September 4, 2024 and sell it today you would lose (200.00) from holding Shinil Electronics Co or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Shinil Electronics Co
Performance |
| Timeline |
| Jeong Moon Information |
| Shinil Electronics |
Jeong Moon and Shinil Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Shinil Electronics
The main advantage of trading using opposite Jeong Moon and Shinil Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, Shinil Electronics 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 Shinil Electronics will offset losses from the drop in Shinil Electronics' long position.| Jeong Moon vs. Dongsin Engineering Construction | Jeong Moon vs. Doosan Fuel Cell | Jeong Moon vs. Daishin Balance 1 | Jeong Moon vs. Total Soft Bank |
| Shinil Electronics vs. Korea Real Estate | Shinil Electronics vs. Busan Industrial Co | Shinil Electronics vs. UNISEM Co | Shinil Electronics vs. RPBio Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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