Correlation Between Mobileleader CoLtd and Korea Steel
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and Korea Steel 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 Steel 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 Steel Co, you can compare the effects of market volatilities on Mobileleader CoLtd and Korea Steel 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 Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and Korea Steel.
Diversification Opportunities for Mobileleader CoLtd and Korea Steel
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobileleader and Korea is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and Korea Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Steel 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 Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Steel has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and Korea Steel go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and Korea Steel
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to generate 0.89 times more return on investment than Korea Steel. However, Mobileleader CoLtd is 1.13 times less risky than Korea Steel. It trades about 0.12 of its potential returns per unit of risk. Korea Steel Co is currently generating about 0.03 per unit of risk. If you would invest 1,589,000 in Mobileleader CoLtd on November 28, 2024 and sell it today you would earn a total of 39,000 from holding Mobileleader CoLtd or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobileleader CoLtd vs. Korea Steel Co
Performance |
| Timeline |
| Mobileleader CoLtd |
| Korea Steel |
Mobileleader CoLtd and Korea Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and Korea Steel
The main advantage of trading using opposite Mobileleader CoLtd and Korea Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, Korea Steel 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 Steel will offset losses from the drop in Korea Steel's long position.| Mobileleader CoLtd vs. LG Household Healthcare | Mobileleader CoLtd vs. Infinitt Healthcare Co | Mobileleader CoLtd vs. Korea Shipbuilding Offshore | Mobileleader CoLtd vs. Seoyon Topmetal Co |
| Korea Steel vs. Hanwha Chemical Corp | Korea Steel vs. Kyung In Synthetic Corp | Korea Steel vs. Hannong Chemicals | Korea Steel vs. Digital Imaging Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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