Correlation Between Mobase Electronics and Nepes
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Nepes 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 Mobase Electronics and Nepes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobase Electronics CoLtd and Nepes, you can compare the effects of market volatilities on Mobase Electronics and Nepes 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 Mobase Electronics with a short position of Nepes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Nepes.
Diversification Opportunities for Mobase Electronics and Nepes
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobase and Nepes is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Nepes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nepes and Mobase Electronics 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 Mobase Electronics CoLtd are associated (or correlated) with Nepes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nepes has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Nepes go up and down completely randomly.
Pair Corralation between Mobase Electronics and Nepes
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to under-perform the Nepes. But the stock apears to be less risky and, when comparing its historical volatility, Mobase Electronics CoLtd is 3.86 times less risky than Nepes. The stock trades about -0.04 of its potential returns per unit of risk. The Nepes is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 745,000 in Nepes on November 22, 2024 and sell it today you would earn a total of 148,000 from holding Nepes or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Nepes
Performance |
| Timeline |
| Mobase Electronics CoLtd |
| Nepes |
Mobase Electronics and Nepes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Nepes
The main advantage of trading using opposite Mobase Electronics and Nepes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Nepes 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 Nepes will offset losses from the drop in Nepes' long position.| Mobase Electronics vs. Ecoplastic | Mobase Electronics vs. EV Advanced Material | Mobase Electronics vs. Hyundai Engineering Plastics | Mobase Electronics vs. Lake Materials Co |
| Nepes vs. Dongjin Semichem Co | Nepes vs. SFA Semicon Co | Nepes vs. Seoul Semiconductor Co | Nepes vs. EO Technics 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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