Correlation Between Mobase Electronics and Samsung Special
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Samsung Special 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 Samsung Special 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 Samsung Special Purpose, you can compare the effects of market volatilities on Mobase Electronics and Samsung Special 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 Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Samsung Special.
Diversification Opportunities for Mobase Electronics and Samsung Special
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mobase and Samsung is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose 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 Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Samsung Special go up and down completely randomly.
Pair Corralation between Mobase Electronics and Samsung Special
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to generate 0.6 times more return on investment than Samsung Special. However, Mobase Electronics CoLtd is 1.67 times less risky than Samsung Special. It trades about 0.14 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about 0.04 per unit of risk. If you would invest 139,200 in Mobase Electronics CoLtd on October 24, 2024 and sell it today you would earn a total of 6,300 from holding Mobase Electronics CoLtd or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobase Electronics CoLtd vs. Samsung Special Purpose
Performance |
| Timeline |
| Mobase Electronics CoLtd |
| Samsung Special Purpose |
Mobase Electronics and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobase Electronics and Samsung Special
The main advantage of trading using opposite Mobase Electronics and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Samsung Special 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 Samsung Special will offset losses from the drop in Samsung Special's long position.| Mobase Electronics vs. KB Financial Group | Mobase Electronics vs. Shinhan Financial Group | Mobase Electronics vs. Hana Financial | Mobase Electronics vs. Woori Financial Group |
| Samsung Special vs. Cuckoo Homesys Co | Samsung Special vs. Kukdong Oil Chemicals | Samsung Special vs. Homecast CoLtd | Samsung Special vs. Green Cross Medical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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