Correlation Between BIT Computer and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both BIT Computer 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 BIT Computer and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Mobileleader CoLtd, you can compare the effects of market volatilities on BIT Computer 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 BIT Computer with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Mobileleader CoLtd.
Diversification Opportunities for BIT Computer and Mobileleader CoLtd
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIT and Mobileleader is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and BIT Computer 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 BIT Computer Co 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 BIT Computer i.e., BIT Computer and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between BIT Computer and Mobileleader CoLtd
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 0.49 times more return on investment than Mobileleader CoLtd. However, BIT Computer Co is 2.02 times less risky than Mobileleader CoLtd. It trades about -0.04 of its potential returns per unit of risk. Mobileleader CoLtd is currently generating about -0.18 per unit of risk. If you would invest 493,000 in BIT Computer Co on October 30, 2024 and sell it today you would lose (4,000) from holding BIT Computer Co or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Mobileleader CoLtd
Performance |
| Timeline |
| BIT Computer |
| Mobileleader CoLtd |
BIT Computer and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Mobileleader CoLtd
The main advantage of trading using opposite BIT Computer and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer 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.| BIT Computer vs. Alton Sports CoLtd | BIT Computer vs. Korea Shipbuilding Offshore | BIT Computer vs. Green Cross Medical | BIT Computer vs. MetaLabs Co |
| Mobileleader CoLtd vs. KG Eco Technology | Mobileleader CoLtd vs. SCI Information Service | Mobileleader CoLtd vs. Insung Information Co | Mobileleader CoLtd vs. Korea Information Engineering |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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