Correlation Between Han Kook and Mobirix
Can any of the company-specific risk be diversified away by investing in both Han Kook and Mobirix 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 Han Kook and Mobirix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Han Kook Capital and Mobirix Co, you can compare the effects of market volatilities on Han Kook and Mobirix 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 Han Kook with a short position of Mobirix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Han Kook and Mobirix.
Diversification Opportunities for Han Kook and Mobirix
Excellent diversification
The 3 months correlation between Han and Mobirix is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Han Kook Capital and Mobirix Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobirix and Han Kook 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 Han Kook Capital are associated (or correlated) with Mobirix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobirix has no effect on the direction of Han Kook i.e., Han Kook and Mobirix go up and down completely randomly.
Pair Corralation between Han Kook and Mobirix
Assuming the 90 days trading horizon Han Kook Capital is expected to generate 0.55 times more return on investment than Mobirix. However, Han Kook Capital is 1.82 times less risky than Mobirix. It trades about -0.03 of its potential returns per unit of risk. Mobirix Co is currently generating about -0.06 per unit of risk. If you would invest 70,859 in Han Kook Capital on September 3, 2024 and sell it today you would lose (14,459) from holding Han Kook Capital or give up 20.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Han Kook Capital vs. Mobirix Co
Performance |
| Timeline |
| Han Kook Capital |
| Mobirix |
Han Kook and Mobirix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Han Kook and Mobirix
The main advantage of trading using opposite Han Kook and Mobirix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Han Kook position performs unexpectedly, Mobirix 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 Mobirix will offset losses from the drop in Mobirix's long position.| Han Kook vs. Hyundai Home Shopping | Han Kook vs. Haesung Industrial Co | Han Kook vs. Kbi Metal Co | Han Kook vs. Pungguk Ethanol Industrial |
| Mobirix vs. Lotte Chilsung Beverage | Mobirix vs. FNSTech Co | Mobirix vs. Shinsung Delta Tech | Mobirix vs. Samyang Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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