Correlation Between Mobase Electronics and Seung Il
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Seung Il 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 Seung Il 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 Seung Il, you can compare the effects of market volatilities on Mobase Electronics and Seung Il 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 Seung Il. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Seung Il.
Diversification Opportunities for Mobase Electronics and Seung Il
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mobase and Seung is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Seung Il in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seung Il 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 Seung Il. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seung Il has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Seung Il go up and down completely randomly.
Pair Corralation between Mobase Electronics and Seung Il
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to under-perform the Seung Il. In addition to that, Mobase Electronics is 1.22 times more volatile than Seung Il. It trades about -0.08 of its total potential returns per unit of risk. Seung Il is currently generating about 0.03 per unit of volatility. If you would invest 756,000 in Seung Il on November 7, 2024 and sell it today you would earn a total of 5,000 from holding Seung Il or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Seung Il
Performance |
| Timeline |
| Mobase Electronics CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Seung Il |
Mobase Electronics and Seung Il Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Seung Il
The main advantage of trading using opposite Mobase Electronics and Seung Il positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Seung Il 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 Seung Il will offset losses from the drop in Seung Il's long position.| Mobase Electronics vs. Daou Technology | Mobase Electronics vs. Neungyule Education | Mobase Electronics vs. Choil Aluminum | Mobase Electronics vs. Global Standard Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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