Correlation Between Mobilezone Holding and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and DFS Furniture 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 Mobilezone Holding and DFS Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mobilezone holding AG and DFS Furniture PLC, you can compare the effects of market volatilities on Mobilezone Holding and DFS Furniture 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 Mobilezone Holding with a short position of DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and DFS Furniture.
Diversification Opportunities for Mobilezone Holding and DFS Furniture
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobilezone and DFS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture PLC and Mobilezone Holding 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 mobilezone holding AG are associated (or correlated) with DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and DFS Furniture go up and down completely randomly.
Pair Corralation between Mobilezone Holding and DFS Furniture
Assuming the 90 days trading horizon mobilezone holding AG is expected to generate 0.56 times more return on investment than DFS Furniture. However, mobilezone holding AG is 1.8 times less risky than DFS Furniture. It trades about 0.2 of its potential returns per unit of risk. DFS Furniture PLC is currently generating about -0.08 per unit of risk. If you would invest 1,084 in mobilezone holding AG on November 7, 2024 and sell it today you would earn a total of 54.00 from holding mobilezone holding AG or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
mobilezone holding AG vs. DFS Furniture PLC
Performance |
| Timeline |
| mobilezone holding |
| DFS Furniture PLC |
Mobilezone Holding and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and DFS Furniture
The main advantage of trading using opposite Mobilezone Holding and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's long position.| Mobilezone Holding vs. G5 Entertainment AB | Mobilezone Holding vs. Liberty Media Corp | Mobilezone Holding vs. Compagnie Plastic Omnium | Mobilezone Holding vs. Silver Bullet Data |
| DFS Furniture vs. Erste Group Bank | DFS Furniture vs. Cars Inc | DFS Furniture vs. Bankers Investment Trust | DFS Furniture vs. Litigation Capital Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |