Correlation Between Mobile Appliance and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance and Samji 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 Samji 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 Samji Electronics Co, you can compare the effects of market volatilities on Mobile Appliance and Samji 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and Samji Electronics.
Diversification Opportunities for Mobile Appliance and Samji Electronics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobile and Samji is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Mobile Appliance i.e., Mobile Appliance and Samji Electronics go up and down completely randomly.
Pair Corralation between Mobile Appliance and Samji Electronics
Assuming the 90 days trading horizon Mobile Appliance is expected to generate 4.07 times more return on investment than Samji Electronics. However, Mobile Appliance is 4.07 times more volatile than Samji Electronics Co. It trades about 0.08 of its potential returns per unit of risk. Samji Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 215,500 in Mobile Appliance on August 29, 2024 and sell it today you would earn a total of 11,000 from holding Mobile Appliance or generate 5.1% 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. Samji Electronics Co
Performance |
| Timeline |
| Mobile Appliance |
| Samji Electronics |
Mobile Appliance and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and Samji Electronics
The main advantage of trading using opposite Mobile Appliance and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance position performs unexpectedly, Samji 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 Samji Electronics will offset losses from the drop in Samji Electronics' long position.| Mobile Appliance vs. Automobile Pc | Mobile Appliance vs. Korean Reinsurance Co | Mobile Appliance vs. DSC Investment | Mobile Appliance vs. Stic Investments |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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