Correlation Between Jeong Moon and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and Kisan Telecom 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 Kisan Telecom 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 Kisan Telecom Co, you can compare the effects of market volatilities on Jeong Moon and Kisan Telecom 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 Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Kisan Telecom.
Diversification Opportunities for Jeong Moon and Kisan Telecom
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeong and Kisan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom 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 Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Jeong Moon i.e., Jeong Moon and Kisan Telecom go up and down completely randomly.
Pair Corralation between Jeong Moon and Kisan Telecom
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the Kisan Telecom. In addition to that, Jeong Moon is 1.24 times more volatile than Kisan Telecom Co. It trades about -0.21 of its total potential returns per unit of risk. Kisan Telecom Co is currently generating about 0.02 per unit of volatility. If you would invest 176,200 in Kisan Telecom Co on September 2, 2024 and sell it today you would earn a total of 800.00 from holding Kisan Telecom Co or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Kisan Telecom Co
Performance |
| Timeline |
| Jeong Moon Information |
| Kisan Telecom |
Jeong Moon and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Kisan Telecom
The main advantage of trading using opposite Jeong Moon and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's 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 |
| Kisan Telecom vs. Dongsin Engineering Construction | Kisan Telecom vs. Doosan Fuel Cell | Kisan Telecom vs. Daishin Balance 1 | Kisan Telecom vs. Total Soft Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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