Correlation Between Jeong Moon and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and KyungIn 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 KyungIn 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 KyungIn Electronics Co, you can compare the effects of market volatilities on Jeong Moon and KyungIn 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 KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and KyungIn Electronics.
Diversification Opportunities for Jeong Moon and KyungIn Electronics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeong and KyungIn is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn 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 KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Jeong Moon i.e., Jeong Moon and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Jeong Moon and KyungIn Electronics
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the KyungIn Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Jeong Moon Information is 1.2 times less risky than KyungIn Electronics. The stock trades about -0.04 of its potential returns per unit of risk. The KyungIn Electronics Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,354,010 in KyungIn Electronics Co on October 18, 2024 and sell it today you would lose (334,010) from holding KyungIn Electronics Co or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. KyungIn Electronics Co
Performance |
| Timeline |
| Jeong Moon Information |
| KyungIn Electronics |
Jeong Moon and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and KyungIn Electronics
The main advantage of trading using opposite Jeong Moon and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, KyungIn 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Jeong Moon vs. Seers Technology | Jeong Moon vs. Koh Young Technology | Jeong Moon vs. Amogreentech Co | Jeong Moon vs. AeroSpace Technology of |
| KyungIn Electronics vs. NICE Information Service | KyungIn Electronics vs. Jeong Moon Information | KyungIn Electronics vs. Nice Information Telecommunication | KyungIn Electronics vs. BGF Retail 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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