Correlation Between Dongsin Engineering and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both Dongsin Engineering and Mobileleader CoLtd 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 Dongsin Engineering and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongsin Engineering Construction and Mobileleader CoLtd, you can compare the effects of market volatilities on Dongsin Engineering and Mobileleader CoLtd 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 Dongsin Engineering with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongsin Engineering and Mobileleader CoLtd.
Diversification Opportunities for Dongsin Engineering and Mobileleader CoLtd
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongsin and Mobileleader is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Dongsin Engineering Constructi and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and Dongsin Engineering 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 Dongsin Engineering Construction are associated (or correlated) with Mobileleader CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileleader CoLtd has no effect on the direction of Dongsin Engineering i.e., Dongsin Engineering and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between Dongsin Engineering and Mobileleader CoLtd
Assuming the 90 days trading horizon Dongsin Engineering Construction is expected to under-perform the Mobileleader CoLtd. In addition to that, Dongsin Engineering is 2.98 times more volatile than Mobileleader CoLtd. It trades about -0.04 of its total potential returns per unit of risk. Mobileleader CoLtd is currently generating about 0.04 per unit of volatility. If you would invest 1,681,000 in Mobileleader CoLtd on September 2, 2024 and sell it today you would earn a total of 25,000 from holding Mobileleader CoLtd or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongsin Engineering Constructi vs. Mobileleader CoLtd
Performance |
| Timeline |
| Dongsin Engineering |
| Mobileleader CoLtd |
Dongsin Engineering and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongsin Engineering and Mobileleader CoLtd
The main advantage of trading using opposite Dongsin Engineering and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongsin Engineering position performs unexpectedly, Mobileleader CoLtd 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 Mobileleader CoLtd will offset losses from the drop in Mobileleader CoLtd's long position.| Dongsin Engineering vs. Busan Industrial Co | Dongsin Engineering vs. Busan Ind | Dongsin Engineering vs. Mirae Asset Daewoo | Dongsin Engineering vs. Finebesteel |
| Mobileleader CoLtd vs. Dongsin Engineering Construction | Mobileleader CoLtd vs. Doosan Fuel Cell | Mobileleader CoLtd vs. Daishin Balance 1 | Mobileleader CoLtd vs. Total Soft Bank |
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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