Correlation Between Global Net and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Global Net and Mobilezone Holding 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 Global Net and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and mobilezone holding AG, you can compare the effects of market volatilities on Global Net and Mobilezone Holding 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 Global Net with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Mobilezone Holding.
Diversification Opportunities for Global Net and Mobilezone Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Mobilezone is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Global Net 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 Global Net Lease are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Global Net i.e., Global Net and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Global Net and Mobilezone Holding
Assuming the 90 days trading horizon Global Net Lease is expected to generate 3.85 times more return on investment than Mobilezone Holding. However, Global Net is 3.85 times more volatile than mobilezone holding AG. It trades about 0.01 of its potential returns per unit of risk. mobilezone holding AG is currently generating about -0.01 per unit of risk. If you would invest 1,001 in Global Net Lease on September 5, 2024 and sell it today you would lose (279.00) from holding Global Net Lease or give up 27.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.21% |
| Values | Daily Returns |
Global Net Lease vs. mobilezone holding AG
Performance |
| Timeline |
| Global Net Lease |
| mobilezone holding |
Global Net and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Mobilezone Holding
The main advantage of trading using opposite Global Net and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| Global Net vs. Samsung Electronics Co | Global Net vs. Samsung Electronics Co | Global Net vs. Hyundai Motor | Global Net vs. Toyota Motor Corp |
| Mobilezone Holding vs. Samsung Electronics Co | Mobilezone Holding vs. Global Net Lease | Mobilezone Holding vs. Blackstone Loan Financing | Mobilezone Holding vs. Darden Restaurants |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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