Correlation Between Mobileleader CoLtd and ENERGYMACHINERY KOREA
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and ENERGYMACHINERY KOREA CoLtd, you can compare the effects of market volatilities on Mobileleader CoLtd and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and ENERGYMACHINERY KOREA.
Diversification Opportunities for Mobileleader CoLtd and ENERGYMACHINERY KOREA
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mobileleader and ENERGYMACHINERY is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and ENERGYMACHINERY KOREA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGYMACHINERY KOREA has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and ENERGYMACHINERY KOREA go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and ENERGYMACHINERY KOREA
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to under-perform the ENERGYMACHINERY KOREA. But the stock apears to be less risky and, when comparing its historical volatility, Mobileleader CoLtd is 1.42 times less risky than ENERGYMACHINERY KOREA. The stock trades about -0.01 of its potential returns per unit of risk. The ENERGYMACHINERY KOREA CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 235,500 in ENERGYMACHINERY KOREA CoLtd on October 14, 2024 and sell it today you would lose (7,500) from holding ENERGYMACHINERY KOREA CoLtd or give up 3.18% 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. ENERGYMACHINERY KOREA CoLtd
Performance |
| Timeline |
| Mobileleader CoLtd |
| ENERGYMACHINERY KOREA |
Mobileleader CoLtd and ENERGYMACHINERY KOREA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and ENERGYMACHINERY KOREA
The main advantage of trading using opposite Mobileleader CoLtd and ENERGYMACHINERY KOREA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA will offset losses from the drop in ENERGYMACHINERY KOREA's long position.| Mobileleader CoLtd vs. Shinhan Inverse Copper | Mobileleader CoLtd vs. DONGKUK TED METAL | Mobileleader CoLtd vs. Kbi Metal Co | Mobileleader CoLtd vs. Seoyon Topmetal 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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