Correlation Between Mgame Corp and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both Mgame Corp 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 Mgame Corp and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mgame Corp and Mobileleader CoLtd, you can compare the effects of market volatilities on Mgame Corp 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 Mgame Corp with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mgame Corp and Mobileleader CoLtd.
Diversification Opportunities for Mgame Corp and Mobileleader CoLtd
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mgame and Mobileleader is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mgame Corp and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and Mgame Corp 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 Mgame Corp 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 Mgame Corp i.e., Mgame Corp and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between Mgame Corp and Mobileleader CoLtd
Assuming the 90 days trading horizon Mgame Corp is expected to generate 0.74 times more return on investment than Mobileleader CoLtd. However, Mgame Corp is 1.34 times less risky than Mobileleader CoLtd. It trades about 0.02 of its potential returns per unit of risk. Mobileleader CoLtd is currently generating about -0.18 per unit of risk. If you would invest 517,000 in Mgame Corp on October 30, 2024 and sell it today you would earn a total of 2,000 from holding Mgame Corp or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mgame Corp vs. Mobileleader CoLtd
Performance |
| Timeline |
| Mgame Corp |
| Mobileleader CoLtd |
Mgame Corp and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mgame Corp and Mobileleader CoLtd
The main advantage of trading using opposite Mgame Corp and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mgame Corp 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.| Mgame Corp vs. PJ Metal Co | Mgame Corp vs. Kbi Metal Co | Mgame Corp vs. Lotte Data Communication | Mgame Corp vs. Neungyule Education |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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