Correlation Between Inzi Display and Sungmoon Electronics
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Sungmoon 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 Inzi Display and Sungmoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Sungmoon Electronics Co, you can compare the effects of market volatilities on Inzi Display and Sungmoon 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 Inzi Display with a short position of Sungmoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Sungmoon Electronics.
Diversification Opportunities for Inzi Display and Sungmoon Electronics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inzi and Sungmoon is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Sungmoon Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungmoon Electronics and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Sungmoon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungmoon Electronics has no effect on the direction of Inzi Display i.e., Inzi Display and Sungmoon Electronics go up and down completely randomly.
Pair Corralation between Inzi Display and Sungmoon Electronics
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 0.48 times more return on investment than Sungmoon Electronics. However, Inzi Display CoLtd is 2.07 times less risky than Sungmoon Electronics. It trades about -0.35 of its potential returns per unit of risk. Sungmoon Electronics Co is currently generating about -0.36 per unit of risk. If you would invest 155,700 in Inzi Display CoLtd on August 29, 2024 and sell it today you would lose (16,200) from holding Inzi Display CoLtd or give up 10.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Sungmoon Electronics Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| Sungmoon Electronics |
Inzi Display and Sungmoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Sungmoon Electronics
The main advantage of trading using opposite Inzi Display and Sungmoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Sungmoon 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 Sungmoon Electronics will offset losses from the drop in Sungmoon Electronics' long position.| Inzi Display vs. Daou Data Corp | Inzi Display vs. Busan Industrial Co | Inzi Display vs. Busan Ind | Inzi Display vs. Shinhan WTI Futures |
| Sungmoon Electronics vs. DAEDUCK ELECTRONICS CoLtd | Sungmoon Electronics vs. Iljin Display | Sungmoon Electronics vs. Busan Industrial Co | Sungmoon Electronics vs. Busan Ind |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |