Correlation Between Jeong Moon and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and Samyoung 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 Samyoung 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Jeong Moon and Samyoung 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Samyoung Electronics.
Diversification Opportunities for Jeong Moon and Samyoung Electronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeong and Samyoung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Jeong Moon i.e., Jeong Moon and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Jeong Moon and Samyoung Electronics
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the Samyoung Electronics. In addition to that, Jeong Moon is 1.2 times more volatile than Samyoung Electronics Co. It trades about -0.03 of its total potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 881,676 in Samyoung Electronics Co on September 3, 2024 and sell it today you would earn a total of 124,324 from holding Samyoung Electronics Co or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Samyoung Electronics Co
Performance |
| Timeline |
| Jeong Moon Information |
| Samyoung Electronics |
Jeong Moon and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Samyoung Electronics
The main advantage of trading using opposite Jeong Moon and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, Samyoung 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 Samyoung Electronics will offset losses from the drop in Samyoung 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 |
| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung Electronics vs. Microfriend |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |