Correlation Between Jeong Moon and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and KIWI Media 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 KIWI Media 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 KIWI Media Group, you can compare the effects of market volatilities on Jeong Moon and KIWI Media 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 KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and KIWI Media.
Diversification Opportunities for Jeong Moon and KIWI Media
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jeong and KIWI is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group 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 KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Jeong Moon i.e., Jeong Moon and KIWI Media go up and down completely randomly.
Pair Corralation between Jeong Moon and KIWI Media
Assuming the 90 days trading horizon Jeong Moon Information is expected to generate 0.69 times more return on investment than KIWI Media. However, Jeong Moon Information is 1.45 times less risky than KIWI Media. It trades about 0.05 of its potential returns per unit of risk. KIWI Media Group is currently generating about -0.12 per unit of risk. If you would invest 83,000 in Jeong Moon Information on October 15, 2024 and sell it today you would earn a total of 1,400 from holding Jeong Moon Information or generate 1.69% 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. KIWI Media Group
Performance |
| Timeline |
| Jeong Moon Information |
| KIWI Media Group |
Jeong Moon and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and KIWI Media
The main advantage of trading using opposite Jeong Moon and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Jeong Moon vs. Hyosung Advanced Materials | Jeong Moon vs. CKH Food Health | Jeong Moon vs. Kolon Plastics | Jeong Moon vs. RF Materials Co |
| KIWI Media vs. Insung Information Co | KIWI Media vs. Koryo Credit Information | KIWI Media vs. Inzi Display CoLtd | KIWI Media vs. Alton Sports CoLtd |
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.
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