Correlation Between Mobase Electronics and Wonik QnC
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Wonik QnC 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 Wonik QnC 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 Wonik QnC, you can compare the effects of market volatilities on Mobase Electronics and Wonik QnC 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 Wonik QnC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Wonik QnC.
Diversification Opportunities for Mobase Electronics and Wonik QnC
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mobase and Wonik is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Wonik QnC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonik QnC 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 Wonik QnC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonik QnC has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Wonik QnC go up and down completely randomly.
Pair Corralation between Mobase Electronics and Wonik QnC
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to generate 0.43 times more return on investment than Wonik QnC. However, Mobase Electronics CoLtd is 2.32 times less risky than Wonik QnC. It trades about -0.28 of its potential returns per unit of risk. Wonik QnC is currently generating about -0.19 per unit of risk. If you would invest 185,600 in Mobase Electronics CoLtd on August 29, 2024 and sell it today you would lose (24,400) from holding Mobase Electronics CoLtd or give up 13.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Wonik QnC
Performance |
| Timeline |
| Mobase Electronics CoLtd |
| Wonik QnC |
Mobase Electronics and Wonik QnC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Wonik QnC
The main advantage of trading using opposite Mobase Electronics and Wonik QnC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Wonik QnC 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 Wonik QnC will offset losses from the drop in Wonik QnC's long position.| Mobase Electronics vs. KMH Hitech Co | Mobase Electronics vs. GemVaxKAEL CoLtd | Mobase Electronics vs. Busan Industrial Co | Mobase Electronics vs. Busan Ind |
| Wonik QnC vs. Lotte Data Communication | Wonik QnC vs. Alton Sports CoLtd | Wonik QnC vs. Seoul Electronics Telecom | Wonik QnC vs. DC Media 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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