Correlation Between IDJ FINANCIAL and Mobile World
Can any of the company-specific risk be diversified away by investing in both IDJ FINANCIAL and Mobile World 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 IDJ FINANCIAL and Mobile World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDJ FINANCIAL and Mobile World Investment, you can compare the effects of market volatilities on IDJ FINANCIAL and Mobile World 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 IDJ FINANCIAL with a short position of Mobile World. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDJ FINANCIAL and Mobile World.
Diversification Opportunities for IDJ FINANCIAL and Mobile World
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IDJ and Mobile is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding IDJ FINANCIAL and Mobile World Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile World Investment and IDJ FINANCIAL 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 IDJ FINANCIAL are associated (or correlated) with Mobile World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile World Investment has no effect on the direction of IDJ FINANCIAL i.e., IDJ FINANCIAL and Mobile World go up and down completely randomly.
Pair Corralation between IDJ FINANCIAL and Mobile World
Assuming the 90 days trading horizon IDJ FINANCIAL is expected to under-perform the Mobile World. But the stock apears to be less risky and, when comparing its historical volatility, IDJ FINANCIAL is 1.01 times less risky than Mobile World. The stock trades about -0.24 of its potential returns per unit of risk. The Mobile World Investment is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 6,000,000 in Mobile World Investment on October 12, 2024 and sell it today you would lose (250,000) from holding Mobile World Investment or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDJ FINANCIAL vs. Mobile World Investment
Performance |
| Timeline |
| IDJ FINANCIAL |
| Mobile World Investment |
IDJ FINANCIAL and Mobile World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDJ FINANCIAL and Mobile World
The main advantage of trading using opposite IDJ FINANCIAL and Mobile World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDJ FINANCIAL position performs unexpectedly, Mobile World 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 Mobile World will offset losses from the drop in Mobile World's long position.| IDJ FINANCIAL vs. BIDV Insurance Corp | IDJ FINANCIAL vs. Asia Commercial Bank | IDJ FINANCIAL vs. PVI Reinsurance Corp | IDJ FINANCIAL vs. Saigon Beer Alcohol |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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