Correlation Between LDG Investment and Mobile World
Can any of the company-specific risk be diversified away by investing in both LDG Investment 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 LDG Investment and Mobile World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDG Investment JSC and Mobile World Investment, you can compare the effects of market volatilities on LDG Investment 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 LDG Investment with a short position of Mobile World. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDG Investment and Mobile World.
Diversification Opportunities for LDG Investment and Mobile World
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LDG and Mobile is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding LDG Investment JSC 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 LDG Investment 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 LDG Investment JSC 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 LDG Investment i.e., LDG Investment and Mobile World go up and down completely randomly.
Pair Corralation between LDG Investment and Mobile World
Assuming the 90 days trading horizon LDG Investment is expected to generate 1.09 times less return on investment than Mobile World. In addition to that, LDG Investment is 1.07 times more volatile than Mobile World Investment. It trades about 0.05 of its total potential returns per unit of risk. Mobile World Investment is currently generating about 0.06 per unit of volatility. If you would invest 5,990,000 in Mobile World Investment on September 16, 2024 and sell it today you would earn a total of 110,000 from holding Mobile World Investment or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDG Investment JSC vs. Mobile World Investment
Performance |
| Timeline |
| LDG Investment JSC |
| Mobile World Investment |
LDG Investment and Mobile World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDG Investment and Mobile World
The main advantage of trading using opposite LDG Investment and Mobile World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDG Investment 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.| LDG Investment vs. FIT INVEST JSC | LDG Investment vs. Damsan JSC | LDG Investment vs. An Phat Plastic | LDG Investment vs. Alphanam ME |
| Mobile World vs. MST Investment JSC | Mobile World vs. Construction And Investment | Mobile World vs. Saigon Beer Alcohol | Mobile World vs. LDG Investment JSC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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