Correlation Between New Residential and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both New Residential 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 New Residential and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and mobilezone holding AG, you can compare the effects of market volatilities on New Residential 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 New Residential with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and Mobilezone Holding.
Diversification Opportunities for New Residential and Mobilezone Holding
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Mobilezone is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and New Residential 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 New Residential Investment 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 New Residential i.e., New Residential and Mobilezone Holding go up and down completely randomly.
Pair Corralation between New Residential and Mobilezone Holding
Assuming the 90 days trading horizon New Residential is expected to generate 1.26 times less return on investment than Mobilezone Holding. But when comparing it to its historical volatility, New Residential Investment is 1.15 times less risky than Mobilezone Holding. It trades about 0.28 of its potential returns per unit of risk. mobilezone holding AG is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,038 in mobilezone holding AG on November 3, 2024 and sell it today you would earn a total of 100.00 from holding mobilezone holding AG or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New Residential Investment vs. mobilezone holding AG
Performance |
| Timeline |
| New Residential Inve |
| mobilezone holding |
New Residential and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Residential and Mobilezone Holding
The main advantage of trading using opposite New Residential and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential 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.| New Residential vs. MyHealthChecked Plc | New Residential vs. Gamma Communications PLC | New Residential vs. CVS Health Corp | New Residential vs. Planet Fitness Cl |
| Mobilezone Holding vs. Zoom Video Communications | Mobilezone Holding vs. Batm Advanced Communications | Mobilezone Holding vs. Geely Automobile Holdings | Mobilezone Holding vs. Seraphim Space 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |