Correlation Between Mobileleader CoLtd and KakaoBank Corp
Can any of the company-specific risk be diversified away by investing in both Mobileleader CoLtd and KakaoBank Corp 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 KakaoBank Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileleader CoLtd and KakaoBank Corp, you can compare the effects of market volatilities on Mobileleader CoLtd and KakaoBank Corp 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 KakaoBank Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileleader CoLtd and KakaoBank Corp.
Diversification Opportunities for Mobileleader CoLtd and KakaoBank Corp
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobileleader and KakaoBank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mobileleader CoLtd and KakaoBank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KakaoBank Corp 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 KakaoBank Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KakaoBank Corp has no effect on the direction of Mobileleader CoLtd i.e., Mobileleader CoLtd and KakaoBank Corp go up and down completely randomly.
Pair Corralation between Mobileleader CoLtd and KakaoBank Corp
Assuming the 90 days trading horizon Mobileleader CoLtd is expected to generate 5.19 times less return on investment than KakaoBank Corp. But when comparing it to its historical volatility, Mobileleader CoLtd is 1.87 times less risky than KakaoBank Corp. It trades about 0.13 of its potential returns per unit of risk. KakaoBank Corp is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,080,000 in KakaoBank Corp on November 19, 2024 and sell it today you would earn a total of 275,000 from holding KakaoBank Corp or generate 13.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mobileleader CoLtd vs. KakaoBank Corp
Performance |
Timeline |
Mobileleader CoLtd |
KakaoBank Corp |
Mobileleader CoLtd and KakaoBank Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mobileleader CoLtd and KakaoBank Corp
The main advantage of trading using opposite Mobileleader CoLtd and KakaoBank Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileleader CoLtd position performs unexpectedly, KakaoBank Corp 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 KakaoBank Corp will offset losses from the drop in KakaoBank Corp's long position.Mobileleader CoLtd vs. Puloon Technology | ||
Mobileleader CoLtd vs. Adaptive Plasma Technology | ||
Mobileleader CoLtd vs. Daou Technology | ||
Mobileleader CoLtd vs. PI Advanced Materials |
KakaoBank Corp vs. Cloud Air CoLtd | ||
KakaoBank Corp vs. ENF Technology Co | ||
KakaoBank Corp vs. Korean Air Lines | ||
KakaoBank Corp vs. NewFlex Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |