Correlation Between Cuckoo Electronics and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Cuckoo Electronics and Sung Bo 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 Cuckoo Electronics and Sung Bo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuckoo Electronics Co and Sung Bo Chemicals, you can compare the effects of market volatilities on Cuckoo Electronics and Sung Bo 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 Cuckoo Electronics with a short position of Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuckoo Electronics and Sung Bo.
Diversification Opportunities for Cuckoo Electronics and Sung Bo
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cuckoo and Sung is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cuckoo Electronics Co and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals and Cuckoo 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 Cuckoo Electronics Co are associated (or correlated) with Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Cuckoo Electronics i.e., Cuckoo Electronics and Sung Bo go up and down completely randomly.
Pair Corralation between Cuckoo Electronics and Sung Bo
Assuming the 90 days trading horizon Cuckoo Electronics Co is expected to under-perform the Sung Bo. But the stock apears to be less risky and, when comparing its historical volatility, Cuckoo Electronics Co is 1.07 times less risky than Sung Bo. The stock trades about -0.22 of its potential returns per unit of risk. The Sung Bo Chemicals is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 250,000 in Sung Bo Chemicals on December 1, 2024 and sell it today you would lose (4,000) from holding Sung Bo Chemicals or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuckoo Electronics Co vs. Sung Bo Chemicals
Performance |
| Timeline |
| Cuckoo Electronics |
| Sung Bo Chemicals |
Cuckoo Electronics and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuckoo Electronics and Sung Bo
The main advantage of trading using opposite Cuckoo Electronics and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuckoo Electronics position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.| Cuckoo Electronics vs. Digital Power Communications | Cuckoo Electronics vs. Choil Aluminum | Cuckoo Electronics vs. Daejung Chemicals Metals | Cuckoo Electronics vs. ZUM Internet Corp |
| Sung Bo vs. Iljin Display | Sung Bo vs. Hotel Shilla Co | Sung Bo vs. Nice Information Telecommunication | Sung Bo vs. Dongkuk Steel Mill |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |