Correlation Between Shinil Industrial and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both Shinil Industrial and Mobileleader CoLtd 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 Shinil Industrial and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinil Industrial Co and Mobileleader CoLtd, you can compare the effects of market volatilities on Shinil Industrial and Mobileleader CoLtd 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 Shinil Industrial with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinil Industrial and Mobileleader CoLtd.
Diversification Opportunities for Shinil Industrial and Mobileleader CoLtd
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shinil and Mobileleader is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shinil Industrial Co and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and Shinil Industrial 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 Shinil Industrial Co are associated (or correlated) with Mobileleader CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileleader CoLtd has no effect on the direction of Shinil Industrial i.e., Shinil Industrial and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between Shinil Industrial and Mobileleader CoLtd
Assuming the 90 days trading horizon Shinil Industrial Co is expected to under-perform the Mobileleader CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Shinil Industrial Co is 1.76 times less risky than Mobileleader CoLtd. The stock trades about -0.08 of its potential returns per unit of risk. The Mobileleader CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,762,577 in Mobileleader CoLtd on November 9, 2024 and sell it today you would lose (124,577) from holding Mobileleader CoLtd or give up 7.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinil Industrial Co vs. Mobileleader CoLtd
Performance |
| Timeline |
| Shinil Industrial |
| Mobileleader CoLtd |
Shinil Industrial and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinil Industrial and Mobileleader CoLtd
The main advantage of trading using opposite Shinil Industrial and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinil Industrial position performs unexpectedly, Mobileleader CoLtd 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 Mobileleader CoLtd will offset losses from the drop in Mobileleader CoLtd's long position.| Shinil Industrial vs. Tae Kyung Chemical | Shinil Industrial vs. Namhae Chemical | Shinil Industrial vs. Kumho Petro Chemical | Shinil Industrial vs. BGF Retail Co |
| Mobileleader CoLtd vs. Korea Information Engineering | Mobileleader CoLtd vs. Shinhan Inverse Silver | Mobileleader CoLtd vs. Vitzro Tech Co | Mobileleader CoLtd vs. PNC Technologies co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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