Correlation Between Moonbae Steel and EMnet
Can any of the company-specific risk be diversified away by investing in both Moonbae Steel and EMnet 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 Moonbae Steel and EMnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moonbae Steel and eMnet Inc, you can compare the effects of market volatilities on Moonbae Steel and EMnet 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 Moonbae Steel with a short position of EMnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moonbae Steel and EMnet.
Diversification Opportunities for Moonbae Steel and EMnet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Moonbae and EMnet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moonbae Steel and eMnet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eMnet Inc and Moonbae Steel 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 Moonbae Steel are associated (or correlated) with EMnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eMnet Inc has no effect on the direction of Moonbae Steel i.e., Moonbae Steel and EMnet go up and down completely randomly.
Pair Corralation between Moonbae Steel and EMnet
Assuming the 90 days trading horizon Moonbae Steel is expected to under-perform the EMnet. But the stock apears to be less risky and, when comparing its historical volatility, Moonbae Steel is 1.94 times less risky than EMnet. The stock trades about -0.02 of its potential returns per unit of risk. The eMnet Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 397,865 in eMnet Inc on December 4, 2024 and sell it today you would lose (156,365) from holding eMnet Inc or give up 39.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moonbae Steel vs. eMnet Inc
Performance |
| Timeline |
| Moonbae Steel |
| eMnet Inc |
Moonbae Steel and EMnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moonbae Steel and EMnet
The main advantage of trading using opposite Moonbae Steel and EMnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moonbae Steel position performs unexpectedly, EMnet 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 EMnet will offset losses from the drop in EMnet's long position.| Moonbae Steel vs. InnoTherapy | Moonbae Steel vs. Wave Electronics Co | Moonbae Steel vs. Sungmoon Electronics Co | Moonbae Steel vs. Daejoo Electronic Materials |
| EMnet vs. Shinhan Inverse Silver | EMnet vs. Infinitt Healthcare Co | EMnet vs. Cots Technology Co | EMnet vs. LG Household Healthcare |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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