Correlation Between Mobileleader CoLtd and Haitai Confectionery
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and Haitai Confectionery 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 Haitai Confectionery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and Haitai Confectionery Foods, you can compare the effects of market volatilities on Mobileleader CoLtd and Haitai Confectionery 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 Haitai Confectionery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and Haitai Confectionery.
Diversification Opportunities for Mobileleader CoLtd and Haitai Confectionery
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mobileleader and Haitai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and Haitai Confectionery Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitai Confectionery 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 Haitai Confectionery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitai Confectionery has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and Haitai Confectionery go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and Haitai Confectionery
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to under-perform the Haitai Confectionery. In addition to that, Mobileleader CoLtd is 1.59 times more volatile than Haitai Confectionery Foods. It trades about -0.2 of its total potential returns per unit of risk. Haitai Confectionery Foods is currently generating about -0.01 per unit of volatility. If you would invest 592,633 in Haitai Confectionery Foods on October 16, 2024 and sell it today you would lose (2,633) from holding Haitai Confectionery Foods or give up 0.44% 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. Haitai Confectionery Foods
Performance |
| Timeline |
| Mobileleader CoLtd |
| Haitai Confectionery |
Mobileleader CoLtd and Haitai Confectionery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileleader CoLtd and Haitai Confectionery
The main advantage of trading using opposite Mobileleader CoLtd and Haitai Confectionery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, Haitai Confectionery 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 Haitai Confectionery will offset losses from the drop in Haitai Confectionery's long position.| Mobileleader CoLtd vs. WONIK Materials CoLtd | Mobileleader CoLtd vs. Top Material Co | Mobileleader CoLtd vs. Daejung Chemicals Metals | Mobileleader CoLtd vs. Hyundai Engineering Plastics |
| Haitai Confectionery vs. Netmarble Games Corp | Haitai Confectionery vs. Homecast CoLtd | Haitai Confectionery vs. Mobileleader CoLtd | Haitai Confectionery vs. Ssangyong Information Communication |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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