Correlation Between Mobile Appliance and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance and Daewoo SBI 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 Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Appliance and Daewoo SBI SPAC, you can compare the effects of market volatilities on Mobile Appliance and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and Daewoo SBI.
Diversification Opportunities for Mobile Appliance and Daewoo SBI
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobile and Daewoo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Mobile Appliance i.e., Mobile Appliance and Daewoo SBI go up and down completely randomly.
Pair Corralation between Mobile Appliance and Daewoo SBI
Assuming the 90 days trading horizon Mobile Appliance is expected to under-perform the Daewoo SBI. In addition to that, Mobile Appliance is 1.07 times more volatile than Daewoo SBI SPAC. It trades about -0.03 of its total potential returns per unit of risk. Daewoo SBI SPAC is currently generating about 0.24 per unit of volatility. If you would invest 246,000 in Daewoo SBI SPAC on September 13, 2024 and sell it today you would earn a total of 50,500 from holding Daewoo SBI SPAC or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Appliance vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Mobile Appliance |
| Daewoo SBI SPAC |
Mobile Appliance and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and Daewoo SBI
The main advantage of trading using opposite Mobile Appliance and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. LG Energy Solution | Mobile Appliance vs. SK Hynix |
| Daewoo SBI vs. Korea Information Engineering | Daewoo SBI vs. LG Chemicals | Daewoo SBI vs. SK Chemicals Co | Daewoo SBI vs. Daesung Hi Tech 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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