Correlation Between Mobile Appliance and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance and Anam Electronics 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 Mobile Appliance and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Appliance and Anam Electronics Co, you can compare the effects of market volatilities on Mobile Appliance and Anam Electronics 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 Mobile Appliance with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and Anam Electronics.
Diversification Opportunities for Mobile Appliance and Anam Electronics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobile and Anam is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Mobile Appliance 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 Mobile Appliance are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Mobile Appliance i.e., Mobile Appliance and Anam Electronics go up and down completely randomly.
Pair Corralation between Mobile Appliance and Anam Electronics
Assuming the 90 days trading horizon Mobile Appliance is expected to generate 1.24 times more return on investment than Anam Electronics. However, Mobile Appliance is 1.24 times more volatile than Anam Electronics Co. It trades about 0.33 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 199,000 in Mobile Appliance on October 28, 2024 and sell it today you would earn a total of 28,000 from holding Mobile Appliance or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Appliance vs. Anam Electronics Co
Performance |
| Timeline |
| Mobile Appliance |
| Anam Electronics |
Mobile Appliance and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and Anam Electronics
The main advantage of trading using opposite Mobile Appliance and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Mobile Appliance vs. Ssangyong Information Communication | Mobile Appliance vs. SS TECH | Mobile Appliance vs. Digital Power Communications | Mobile Appliance vs. RFTech Co |
| Anam Electronics vs. Handok Clean Tech | Anam Electronics vs. Duksan Hi Metal | Anam Electronics vs. Dongbang Transport Logistics | Anam Electronics vs. BIT Computer 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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