Correlation Between Jeong Moon and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Jeong Moon and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and BIT Computer.
Diversification Opportunities for Jeong Moon and BIT Computer
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jeong and BIT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Jeong Moon i.e., Jeong Moon and BIT Computer go up and down completely randomly.
Pair Corralation between Jeong Moon and BIT Computer
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the BIT Computer. In addition to that, Jeong Moon is 1.08 times more volatile than BIT Computer Co. It trades about -0.19 of its total potential returns per unit of risk. BIT Computer Co is currently generating about 0.16 per unit of volatility. If you would invest 455,000 in BIT Computer Co on September 14, 2024 and sell it today you would earn a total of 44,500 from holding BIT Computer Co or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. BIT Computer Co
Performance |
| Timeline |
| Jeong Moon Information |
| BIT Computer |
Jeong Moon and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and BIT Computer
The main advantage of trading using opposite Jeong Moon and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Jeong Moon vs. Cube Entertainment | Jeong Moon vs. Dreamus Company | Jeong Moon vs. LG Energy Solution | Jeong Moon vs. Dongwon System |
| BIT Computer vs. Jeong Moon Information | BIT Computer vs. Dongwon Metal Co | BIT Computer vs. Duksan Hi Metal | BIT Computer vs. Koryo Credit Information |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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