Correlation Between Mobilezone Holding and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on Mobilezone Holding and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and Lendinvest PLC.
Diversification Opportunities for Mobilezone Holding and Lendinvest PLC
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobilezone and Lendinvest is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Mobilezone Holding and Lendinvest PLC
Assuming the 90 days trading horizon mobilezone holding AG is expected to generate 0.74 times more return on investment than Lendinvest PLC. However, mobilezone holding AG is 1.34 times less risky than Lendinvest PLC. It trades about 0.0 of its potential returns per unit of risk. Lendinvest PLC is currently generating about -0.02 per unit of risk. If you would invest 1,397 in mobilezone holding AG on September 1, 2024 and sell it today you would lose (5.00) from holding mobilezone holding AG or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.27% |
| Values | Daily Returns |
mobilezone holding AG vs. Lendinvest PLC
Performance |
| Timeline |
| mobilezone holding |
| Lendinvest PLC |
Mobilezone Holding and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and Lendinvest PLC
The main advantage of trading using opposite Mobilezone Holding and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| Mobilezone Holding vs. Uniper SE | Mobilezone Holding vs. Mulberry Group PLC | Mobilezone Holding vs. London Security Plc | Mobilezone Holding vs. Triad Group PLC |
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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.
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