Correlation Between Mobileleader CoLtd and Nongshim
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and Nongshim 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 Mobileleader CoLtd and Nongshim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and Nongshim, you can compare the effects of market volatilities on Mobileleader CoLtd and Nongshim 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 Mobileleader CoLtd with a short position of Nongshim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and Nongshim.
Diversification Opportunities for Mobileleader CoLtd and Nongshim
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mobileleader and Nongshim is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and Nongshim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nongshim and Mobileleader CoLtd 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 Mobileleader CoLtd are associated (or correlated) with Nongshim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nongshim has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and Nongshim go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and Nongshim
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to under-perform the Nongshim. But the stock apears to be less risky and, when comparing its historical volatility, Mobileleader CoLtd is 1.03 times less risky than Nongshim. The stock trades about -0.03 of its potential returns per unit of risk. The Nongshim is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 34,572,600 in Nongshim on November 30, 2024 and sell it today you would lose (472,600) from holding Nongshim or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobileleader CoLtd vs. Nongshim
Performance |
| Timeline |
| Mobileleader CoLtd |
| Nongshim |
Mobileleader CoLtd and Nongshim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and Nongshim
The main advantage of trading using opposite Mobileleader CoLtd and Nongshim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, Nongshim 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 Nongshim will offset losses from the drop in Nongshim's long position.| Mobileleader CoLtd vs. Lotte Data Communication | Mobileleader CoLtd vs. Nh Investment And | Mobileleader CoLtd vs. Aju IB Investment | Mobileleader CoLtd vs. Korea Investment Holdings |
| Nongshim vs. Hannong Chemicals | Nongshim vs. Korea Shipbuilding Offshore | Nongshim vs. Sung Bo Chemicals | Nongshim vs. CKH Food Health |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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