Correlation Between Foodnamoo and SungMoon Electronics
Can any of the company-specific risk be diversified away by investing in both Foodnamoo 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 Foodnamoo and SungMoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and SungMoon Electronics Co, you can compare the effects of market volatilities on Foodnamoo 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 Foodnamoo with a short position of SungMoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and SungMoon Electronics.
Diversification Opportunities for Foodnamoo and SungMoon Electronics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Foodnamoo and SungMoon is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and SungMoon Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SungMoon Electronics and Foodnamoo 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 Foodnamoo 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 Foodnamoo i.e., Foodnamoo and SungMoon Electronics go up and down completely randomly.
Pair Corralation between Foodnamoo and SungMoon Electronics
Assuming the 90 days trading horizon Foodnamoo is expected to under-perform the SungMoon Electronics. In addition to that, Foodnamoo is 1.17 times more volatile than SungMoon Electronics Co. It trades about -0.07 of its total potential returns per unit of risk. SungMoon Electronics Co is currently generating about 0.22 per unit of volatility. If you would invest 101,400 in SungMoon Electronics Co on October 11, 2024 and sell it today you would earn a total of 10,600 from holding SungMoon Electronics Co or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. SungMoon Electronics Co
Performance |
| Timeline |
| Foodnamoo |
| SungMoon Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Foodnamoo and SungMoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and SungMoon Electronics
The main advantage of trading using opposite Foodnamoo and SungMoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo 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.| Foodnamoo vs. LG Household Healthcare | Foodnamoo vs. Narae Nanotech Corp | Foodnamoo vs. Mgame Corp | Foodnamoo vs. Vitzro Tech Co |
| SungMoon Electronics vs. Samyung Trading Co | SungMoon Electronics vs. TS Investment Corp | SungMoon Electronics vs. Green Cross Medical | SungMoon Electronics vs. Nh Investment And |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |