Correlation Between Mobase Electronics and Seohee Construction
Can any of the company-specific risk be diversified away by investing in both Mobase Electronics and Seohee Construction 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 Mobase Electronics and Seohee Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobase Electronics CoLtd and Seohee Construction Co, you can compare the effects of market volatilities on Mobase Electronics and Seohee Construction 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 Mobase Electronics with a short position of Seohee Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobase Electronics and Seohee Construction.
Diversification Opportunities for Mobase Electronics and Seohee Construction
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobase and Seohee is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mobase Electronics CoLtd and Seohee Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seohee Construction and Mobase Electronics 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 Mobase Electronics CoLtd are associated (or correlated) with Seohee Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seohee Construction has no effect on the direction of Mobase Electronics i.e., Mobase Electronics and Seohee Construction go up and down completely randomly.
Pair Corralation between Mobase Electronics and Seohee Construction
Assuming the 90 days trading horizon Mobase Electronics CoLtd is expected to generate 3.09 times more return on investment than Seohee Construction. However, Mobase Electronics is 3.09 times more volatile than Seohee Construction Co. It trades about 0.19 of its potential returns per unit of risk. Seohee Construction Co is currently generating about -0.07 per unit of risk. If you would invest 187,300 in Mobase Electronics CoLtd on February 26, 2024 and sell it today you would earn a total of 16,200 from holding Mobase Electronics CoLtd or generate 8.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mobase Electronics CoLtd vs. Seohee Construction Co
Performance |
Timeline |
Mobase Electronics CoLtd |
Seohee Construction |
Mobase Electronics and Seohee Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mobase Electronics and Seohee Construction
The main advantage of trading using opposite Mobase Electronics and Seohee Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobase Electronics position performs unexpectedly, Seohee Construction 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 Seohee Construction will offset losses from the drop in Seohee Construction's long position.Mobase Electronics vs. Hyundai Motor Co | Mobase Electronics vs. Hyundai Motor Co | Mobase Electronics vs. Adaptive Plasma Technology | Mobase Electronics vs. LG Electronics |
Seohee Construction vs. Samsung Electronics Co | Seohee Construction vs. Samsung Electronics Co | Seohee Construction vs. KB Financial Group | Seohee Construction vs. Hyundai Motor |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |