Correlation Between Mobase Electronics and Sangsangin
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Sangsangin 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 Sangsangin 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 Sangsangin Co, you can compare the effects of market volatilities on Mobase Electronics and Sangsangin 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 Sangsangin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Sangsangin.
Diversification Opportunities for Mobase Electronics and Sangsangin
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobase and Sangsangin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Sangsangin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin 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 Sangsangin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Sangsangin go up and down completely randomly.
Pair Corralation between Mobase Electronics and Sangsangin
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to generate 1.75 times more return on investment than Sangsangin. However, Mobase Electronics is 1.75 times more volatile than Sangsangin Co. It trades about 0.2 of its potential returns per unit of risk. Sangsangin Co is currently generating about -0.31 per unit of risk. If you would invest 140,200 in Mobase Electronics CoLtd on November 27, 2024 and sell it today you would earn a total of 5,600 from holding Mobase Electronics CoLtd or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Sangsangin Co
Performance |
| Timeline |
| Mobase Electronics CoLtd |
| Sangsangin |
Mobase Electronics and Sangsangin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Sangsangin
The main advantage of trading using opposite Mobase Electronics and Sangsangin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Sangsangin 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 Sangsangin will offset losses from the drop in Sangsangin's long position.| Mobase Electronics vs. Samsung Electronics Co | Mobase Electronics vs. Samsung Electronics Co | Mobase Electronics vs. Naver | Mobase Electronics vs. SK Hynix |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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