Correlation Between Leaf Mobile and Mixi
Can any of the company-specific risk be diversified away by investing in both Leaf Mobile and Mixi 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 Leaf Mobile and Mixi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leaf Mobile and Mixi Inc, you can compare the effects of market volatilities on Leaf Mobile and Mixi 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 Leaf Mobile with a short position of Mixi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaf Mobile and Mixi.
Diversification Opportunities for Leaf Mobile and Mixi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaf and Mixi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Leaf Mobile and Mixi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mixi Inc and Leaf Mobile 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 Leaf Mobile are associated (or correlated) with Mixi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mixi Inc has no effect on the direction of Leaf Mobile i.e., Leaf Mobile and Mixi go up and down completely randomly.
Pair Corralation between Leaf Mobile and Mixi
If you would invest 1,692 in Mixi Inc on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Mixi Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Leaf Mobile vs. Mixi Inc
Performance |
| Timeline |
| Leaf Mobile |
| Mixi Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Leaf Mobile and Mixi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaf Mobile and Mixi
The main advantage of trading using opposite Leaf Mobile and Mixi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaf Mobile position performs unexpectedly, Mixi 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 Mixi will offset losses from the drop in Mixi's long position.The idea behind Leaf Mobile and Mixi Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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