Correlation Between Ssangyong Information and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information 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 Ssangyong Information and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and Mobileleader CoLtd, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and Mobileleader CoLtd.
Diversification Opportunities for Ssangyong Information and Mobileleader CoLtd
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ssangyong and Mobileleader is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and Ssangyong Information 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 Ssangyong Information Communication 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 Ssangyong Information i.e., Ssangyong Information and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between Ssangyong Information and Mobileleader CoLtd
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the Mobileleader CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.26 times less risky than Mobileleader CoLtd. The stock trades about -0.03 of its potential returns per unit of risk. The Mobileleader CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,745,425 in Mobileleader CoLtd on August 28, 2024 and sell it today you would lose (20,425) from holding Mobileleader CoLtd or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. Mobileleader CoLtd
Performance |
| Timeline |
| Ssangyong Information |
| Mobileleader CoLtd |
Ssangyong Information and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and Mobileleader CoLtd
The main advantage of trading using opposite Ssangyong Information and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.| Ssangyong Information vs. Phoenix Materials Co | Ssangyong Information vs. Handok Clean Tech | Ssangyong Information vs. LAKE MATERIALS LTD | Ssangyong Information vs. Hyosung Advanced Materials |
| Mobileleader CoLtd vs. Korea Real Estate | Mobileleader CoLtd vs. Korea Ratings Co | Mobileleader CoLtd vs. IQuest Co | Mobileleader CoLtd vs. Wonbang Tech 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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