Correlation Between DONGKUK TED and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED and Mobileleader CoLtd 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 DONGKUK TED and Mobileleader CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Mobileleader CoLtd, you can compare the effects of market volatilities on DONGKUK TED and Mobileleader CoLtd 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 DONGKUK TED with a short position of Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Mobileleader CoLtd.
Diversification Opportunities for DONGKUK TED and Mobileleader CoLtd
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DONGKUK and Mobileleader is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader CoLtd and DONGKUK TED 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 DONGKUK TED METAL are associated (or correlated) with Mobileleader CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileleader CoLtd has no effect on the direction of DONGKUK TED i.e., DONGKUK TED and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between DONGKUK TED and Mobileleader CoLtd
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.7 times more return on investment than Mobileleader CoLtd. However, DONGKUK TED METAL is 1.43 times less risky than Mobileleader CoLtd. It trades about 0.0 of its potential returns per unit of risk. Mobileleader CoLtd is currently generating about -0.07 per unit of risk. If you would invest 652,000 in DONGKUK TED METAL on October 14, 2024 and sell it today you would lose (6,000) from holding DONGKUK TED METAL or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Mobileleader CoLtd
Performance |
| Timeline |
| DONGKUK TED METAL |
| Mobileleader CoLtd |
DONGKUK TED and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Mobileleader CoLtd
The main advantage of trading using opposite DONGKUK TED and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED position performs unexpectedly, Mobileleader CoLtd 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 Mobileleader CoLtd will offset losses from the drop in Mobileleader CoLtd's long position.| DONGKUK TED vs. Yura Tech Co | DONGKUK TED vs. Dongbu Insurance Co | DONGKUK TED vs. Narae Nanotech Corp | DONGKUK TED vs. N2Tech Co |
| Mobileleader CoLtd vs. Shinhan Inverse Copper | Mobileleader CoLtd vs. DONGKUK TED METAL | Mobileleader CoLtd vs. Kbi Metal Co | Mobileleader CoLtd vs. Seoyon Topmetal 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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