Correlation Between PH Tech and SungMoon Electronics
Can any of the company-specific risk be diversified away by investing in both PH Tech 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 PH Tech and SungMoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and SungMoon Electronics Co, you can compare the effects of market volatilities on PH Tech 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 PH Tech with a short position of SungMoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and SungMoon Electronics.
Diversification Opportunities for PH Tech and SungMoon Electronics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 239890 and SungMoon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and SungMoon Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SungMoon Electronics and PH Tech 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 PH Tech Co 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 PH Tech i.e., PH Tech and SungMoon Electronics go up and down completely randomly.
Pair Corralation between PH Tech and SungMoon Electronics
Assuming the 90 days trading horizon PH Tech Co is expected to generate 1.96 times more return on investment than SungMoon Electronics. However, PH Tech is 1.96 times more volatile than SungMoon Electronics Co. It trades about 0.05 of its potential returns per unit of risk. SungMoon Electronics Co is currently generating about -0.03 per unit of risk. If you would invest 799,000 in PH Tech Co on October 14, 2024 and sell it today you would earn a total of 56,000 from holding PH Tech Co or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. SungMoon Electronics Co
Performance |
| Timeline |
| PH Tech |
| SungMoon Electronics |
PH Tech and SungMoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and SungMoon Electronics
The main advantage of trading using opposite PH Tech and SungMoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech 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.| PH Tech vs. Daeduck Electronics Co | PH Tech vs. Narae Nanotech Corp | PH Tech vs. SEOWONINTECHCoLtd | PH Tech vs. KMH Hitech Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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