Correlation Between MOBILE FACTORY and NEXON
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and NEXON 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 MOBILE FACTORY and NEXON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and NEXON Co, you can compare the effects of market volatilities on MOBILE FACTORY and NEXON 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 MOBILE FACTORY with a short position of NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and NEXON.
Diversification Opportunities for MOBILE FACTORY and NEXON
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MOBILE and NEXON is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and NEXON go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and NEXON
Assuming the 90 days horizon MOBILE FACTORY INC is expected to generate 0.62 times more return on investment than NEXON. However, MOBILE FACTORY INC is 1.61 times less risky than NEXON. It trades about 0.04 of its potential returns per unit of risk. NEXON Co is currently generating about -0.19 per unit of risk. If you would invest 555.00 in MOBILE FACTORY INC on October 25, 2024 and sell it today you would earn a total of 5.00 from holding MOBILE FACTORY INC or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. NEXON Co
Performance |
| Timeline |
| MOBILE FACTORY INC |
| NEXON |
MOBILE FACTORY and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and NEXON
The main advantage of trading using opposite MOBILE FACTORY and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| MOBILE FACTORY vs. NEXON Co | MOBILE FACTORY vs. NEXON Co | MOBILE FACTORY vs. Take Two Interactive Software | MOBILE FACTORY vs. Aristocrat Leisure Limited |
| NEXON vs. Citic Telecom International | NEXON vs. Comba Telecom Systems | NEXON vs. FIREWEED METALS P | NEXON vs. ADRIATIC METALS LS 013355 |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |