Correlation Between Mobileleader CoLtd and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and KTB Investment 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 KTB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and KTB Investment Securities, you can compare the effects of market volatilities on Mobileleader CoLtd and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and KTB Investment.
Diversification Opportunities for Mobileleader CoLtd and KTB Investment
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mobileleader and KTB is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and KTB Investment go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and KTB Investment
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to generate 0.51 times more return on investment than KTB Investment. However, Mobileleader CoLtd is 1.96 times less risky than KTB Investment. It trades about -0.05 of its potential returns per unit of risk. KTB Investment Securities is currently generating about -0.06 per unit of risk. If you would invest 1,627,583 in Mobileleader CoLtd on October 25, 2024 and sell it today you would lose (41,583) from holding Mobileleader CoLtd or give up 2.55% 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. KTB Investment Securities
Performance |
| Timeline |
| Mobileleader CoLtd |
| KTB Investment Securities |
Mobileleader CoLtd and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and KTB Investment
The main advantage of trading using opposite Mobileleader CoLtd and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Mobileleader CoLtd vs. Samsung Electronics Co | Mobileleader CoLtd vs. Samsung Electronics Co | Mobileleader CoLtd vs. SK Hynix | Mobileleader CoLtd vs. HMM Co |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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