Correlation Between Jeong Moon and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on Jeong Moon and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and ABOV Semiconductor.
Diversification Opportunities for Jeong Moon and ABOV Semiconductor
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jeong and ABOV is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Jeong Moon i.e., Jeong Moon and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Jeong Moon and ABOV Semiconductor
Assuming the 90 days trading horizon Jeong Moon Information is expected to generate 0.44 times more return on investment than ABOV Semiconductor. However, Jeong Moon Information is 2.25 times less risky than ABOV Semiconductor. It trades about 0.11 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about -0.03 per unit of risk. If you would invest 80,900 in Jeong Moon Information on November 7, 2024 and sell it today you would earn a total of 2,300 from holding Jeong Moon Information or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Jeong Moon Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ABOV Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jeong Moon and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and ABOV Semiconductor
The main advantage of trading using opposite Jeong Moon and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Jeong Moon vs. KMH Hitech Co | Jeong Moon vs. SEOWONINTECHCoLtd | Jeong Moon vs. Yura Tech Co | Jeong Moon vs. Next Entertainment World |
| ABOV Semiconductor vs. SK Chemicals Co | ABOV Semiconductor vs. Hana Financial | ABOV Semiconductor vs. INFINITT Healthcare Co | ABOV Semiconductor vs. Puloon Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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