Correlation Between Mobileleader CoLtd and Korea Air
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and Korea Air 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 Korea Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and Korea Air Svc, you can compare the effects of market volatilities on Mobileleader CoLtd and Korea Air 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 Korea Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and Korea Air.
Diversification Opportunities for Mobileleader CoLtd and Korea Air
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobileleader and Korea is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and Korea Air Svc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Air Svc 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 Korea Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Air Svc has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and Korea Air go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and Korea Air
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to under-perform the Korea Air. But the stock apears to be less risky and, when comparing its historical volatility, Mobileleader CoLtd is 1.6 times less risky than Korea Air. The stock trades about -0.03 of its potential returns per unit of risk. The Korea Air Svc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,570,000 in Korea Air Svc on October 30, 2024 and sell it today you would lose (170,000) from holding Korea Air Svc or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobileleader CoLtd vs. Korea Air Svc
Performance |
| Timeline |
| Mobileleader CoLtd |
| Korea Air Svc |
Mobileleader CoLtd and Korea Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and Korea Air
The main advantage of trading using opposite Mobileleader CoLtd and Korea Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, Korea Air 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 Korea Air will offset losses from the drop in Korea Air's long position.| Mobileleader CoLtd vs. KG Eco Technology | Mobileleader CoLtd vs. SCI Information Service | Mobileleader CoLtd vs. Insung Information Co | Mobileleader CoLtd vs. Korea Information Engineering |
| Korea Air vs. Wireless Power Amplifier | Korea Air vs. Cloud Air CoLtd | Korea Air vs. Korean Reinsurance Co | Korea Air vs. Dongbu Insurance 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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