Correlation Between Jeong Moon and HB Technology
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and HB Technology 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 HB Technology 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 HB Technology TD, you can compare the effects of market volatilities on Jeong Moon and HB Technology 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 HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and HB Technology.
Diversification Opportunities for Jeong Moon and HB Technology
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jeong and 078150 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD 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 HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Jeong Moon i.e., Jeong Moon and HB Technology go up and down completely randomly.
Pair Corralation between Jeong Moon and HB Technology
Assuming the 90 days trading horizon Jeong Moon is expected to generate 14.0 times less return on investment than HB Technology. But when comparing it to its historical volatility, Jeong Moon Information is 1.93 times less risky than HB Technology. It trades about 0.06 of its potential returns per unit of risk. HB Technology TD is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 199,600 in HB Technology TD on October 24, 2024 and sell it today you would earn a total of 63,400 from holding HB Technology TD or generate 31.76% 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. HB Technology TD
Performance |
| Timeline |
| Jeong Moon Information |
| HB Technology TD |
Jeong Moon and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and HB Technology
The main advantage of trading using opposite Jeong Moon and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology's long position.| Jeong Moon vs. HB Technology TD | Jeong Moon vs. BIT Computer Co | Jeong Moon vs. Korea Air Svc | Jeong Moon vs. AeroSpace Technology of |
| HB Technology vs. Daishin Balance No8 | HB Technology vs. NAU IB Capital | HB Technology vs. Daishin Balance No | HB Technology vs. Daesung Private Equity |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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