Correlation Between Mobase Electronics and Korea Real
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Korea Real 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 Korea Real 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 Korea Real Estate, you can compare the effects of market volatilities on Mobase Electronics and Korea Real 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 Korea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Korea Real.
Diversification Opportunities for Mobase Electronics and Korea Real
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobase and Korea is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Korea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Real Estate 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 Korea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Real Estate has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Korea Real go up and down completely randomly.
Pair Corralation between Mobase Electronics and Korea Real
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to generate 3.88 times more return on investment than Korea Real. However, Mobase Electronics is 3.88 times more volatile than Korea Real Estate. It trades about 0.01 of its potential returns per unit of risk. Korea Real Estate is currently generating about 0.01 per unit of risk. If you would invest 145,400 in Mobase Electronics CoLtd on January 18, 2025 and sell it today you would lose (200.00) from holding Mobase Electronics CoLtd or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Korea Real Estate
Performance |
| Timeline |
| Mobase Electronics CoLtd |
| Korea Real Estate |
Mobase Electronics and Korea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Korea Real
The main advantage of trading using opposite Mobase Electronics and Korea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Korea Real 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 Korea Real will offset losses from the drop in Korea Real's long position.| Mobase Electronics vs. Nice Information Telecommunication | Mobase Electronics vs. Samji Electronics Co | Mobase Electronics vs. ABCO Electronics Co | Mobase Electronics vs. Anam Electronics Co |
| Korea Real vs. Shinsegae Information Communication | Korea Real vs. LG Chemicals | Korea Real vs. Dongbang Transport Logistics | Korea Real vs. Sung Bo Chemicals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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