Correlation Between Jeong Moon and Cosmecca Korea
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and Cosmecca Korea 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 Cosmecca Korea 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 Cosmecca Korea Co, you can compare the effects of market volatilities on Jeong Moon and Cosmecca Korea 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 Cosmecca Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Cosmecca Korea.
Diversification Opportunities for Jeong Moon and Cosmecca Korea
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jeong and Cosmecca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and Cosmecca Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmecca Korea 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 Cosmecca Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmecca Korea has no effect on the direction of Jeong Moon i.e., Jeong Moon and Cosmecca Korea go up and down completely randomly.
Pair Corralation between Jeong Moon and Cosmecca Korea
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the Cosmecca Korea. But the stock apears to be less risky and, when comparing its historical volatility, Jeong Moon Information is 1.81 times less risky than Cosmecca Korea. The stock trades about -0.03 of its potential returns per unit of risk. The Cosmecca Korea Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,735,000 in Cosmecca Korea Co on September 3, 2024 and sell it today you would earn a total of 1,155,000 from holding Cosmecca Korea Co or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Cosmecca Korea Co
Performance |
| Timeline |
| Jeong Moon Information |
| Cosmecca Korea |
Jeong Moon and Cosmecca Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Cosmecca Korea
The main advantage of trading using opposite Jeong Moon and Cosmecca Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, Cosmecca Korea 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 Cosmecca Korea will offset losses from the drop in Cosmecca Korea'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 |
| Cosmecca Korea vs. Hanjoo Light Metal | Cosmecca Korea vs. Taeyang Metal Industrial | Cosmecca Korea vs. LG Chemicals | Cosmecca Korea vs. Youngsin Metal Industrial |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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