Correlation Between Sungwoo Electronics and KyungIn Electronics
Can any of the company-specific risk be diversified away by investing in both Sungwoo Electronics and KyungIn 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 Sungwoo Electronics and KyungIn Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungwoo Electronics Co and KyungIn Electronics Co, you can compare the effects of market volatilities on Sungwoo Electronics and KyungIn 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 Sungwoo Electronics with a short position of KyungIn Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungwoo Electronics and KyungIn Electronics.
Diversification Opportunities for Sungwoo Electronics and KyungIn Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sungwoo and KyungIn is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sungwoo Electronics Co and KyungIn Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KyungIn Electronics and Sungwoo Electronics 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 Sungwoo Electronics Co are associated (or correlated) with KyungIn Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KyungIn Electronics has no effect on the direction of Sungwoo Electronics i.e., Sungwoo Electronics and KyungIn Electronics go up and down completely randomly.
Pair Corralation between Sungwoo Electronics and KyungIn Electronics
Assuming the 90 days trading horizon Sungwoo Electronics Co is expected to under-perform the KyungIn Electronics. In addition to that, Sungwoo Electronics is 1.69 times more volatile than KyungIn Electronics Co. It trades about -0.09 of its total potential returns per unit of risk. KyungIn Electronics Co is currently generating about 0.13 per unit of volatility. If you would invest 2,085,000 in KyungIn Electronics Co on August 28, 2024 and sell it today you would earn a total of 65,000 from holding KyungIn Electronics Co or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungwoo Electronics Co vs. KyungIn Electronics Co
Performance |
| Timeline |
| Sungwoo Electronics |
| KyungIn Electronics |
Sungwoo Electronics and KyungIn Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungwoo Electronics and KyungIn Electronics
The main advantage of trading using opposite Sungwoo Electronics and KyungIn Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungwoo Electronics position performs unexpectedly, KyungIn 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 KyungIn Electronics will offset losses from the drop in KyungIn Electronics' long position.| Sungwoo Electronics vs. AptaBio Therapeutics | Sungwoo Electronics vs. Daewoo SBI SPAC | Sungwoo Electronics vs. Dream Security co | Sungwoo Electronics vs. Microfriend |
| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |