Correlation Between Jeong Moon and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Jeong Moon and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and DAEDUCK ELECTRONICS.
Diversification Opportunities for Jeong Moon and DAEDUCK ELECTRONICS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeong and DAEDUCK is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Jeong Moon i.e., Jeong Moon and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Jeong Moon and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the DAEDUCK ELECTRONICS. In addition to that, Jeong Moon is 1.25 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about -0.03 of its total potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about -0.02 per unit of volatility. If you would invest 974,316 in DAEDUCK ELECTRONICS CoLtd on September 3, 2024 and sell it today you would lose (159,316) from holding DAEDUCK ELECTRONICS CoLtd or give up 16.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Jeong Moon Information |
| DAEDUCK ELECTRONICS CoLtd |
Jeong Moon and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Jeong Moon and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS'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 |
| DAEDUCK ELECTRONICS vs. Iljin Display | DAEDUCK ELECTRONICS vs. Sungmoon Electronics Co | DAEDUCK ELECTRONICS vs. Busan Industrial Co | DAEDUCK ELECTRONICS vs. UNISEM Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |