Correlation Between Axfood AB and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Axfood AB 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 Axfood AB and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and mobilezone holding AG, you can compare the effects of market volatilities on Axfood AB 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 Axfood AB with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and Mobilezone Holding.
Diversification Opportunities for Axfood AB and Mobilezone Holding
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Axfood and Mobilezone is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Axfood AB 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 Axfood AB 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 Axfood AB i.e., Axfood AB and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Axfood AB and Mobilezone Holding
Assuming the 90 days trading horizon Axfood AB is expected to generate 4.77 times less return on investment than Mobilezone Holding. In addition to that, Axfood AB is 1.16 times more volatile than mobilezone holding AG. It trades about 0.05 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.3 per unit of volatility. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axfood AB vs. mobilezone holding AG
Performance |
| Timeline |
| Axfood AB |
| mobilezone holding |
Axfood AB and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and Mobilezone Holding
The main advantage of trading using opposite Axfood AB and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB 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.| Axfood AB vs. Golden Metal Resources | Axfood AB vs. Host Hotels Resorts | Axfood AB vs. Endeavour Mining Corp | Axfood AB vs. Atalaya Mining |
| Mobilezone Holding vs. Ubisoft Entertainment | Mobilezone Holding vs. Centaur Media | Mobilezone Holding vs. Liontrust Asset Management | Mobilezone Holding vs. Norwegian Air Shuttle |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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