Correlation Between Mobilezone Holding and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and Lowland Investment 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 Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on Mobilezone Holding and Lowland Investment 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 Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and Lowland Investment.
Diversification Opportunities for Mobilezone Holding and Lowland Investment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobilezone and Lowland is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland Investment 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Lowland Investment go up and down completely randomly.
Pair Corralation between Mobilezone Holding and Lowland Investment
Assuming the 90 days trading horizon Mobilezone Holding is expected to generate 1.17 times less return on investment than Lowland Investment. But when comparing it to its historical volatility, mobilezone holding AG is 1.58 times less risky than Lowland Investment. It trades about 0.3 of its potential returns per unit of risk. Lowland Investment Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 12,200 in Lowland Investment Co on September 14, 2024 and sell it today you would earn a total of 550.00 from holding Lowland Investment Co or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
mobilezone holding AG vs. Lowland Investment Co
Performance |
| Timeline |
| mobilezone holding |
| Lowland Investment |
Mobilezone Holding and Lowland Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and Lowland Investment
The main advantage of trading using opposite Mobilezone Holding and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, Lowland Investment 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.| Mobilezone Holding vs. Take Two Interactive Software | Mobilezone Holding vs. Bisichi Mining PLC | Mobilezone Holding vs. Panther Metals PLC | Mobilezone Holding vs. Hochschild Mining plc |
| Lowland Investment vs. Catalyst Media Group | Lowland Investment vs. CATLIN GROUP | Lowland Investment vs. Tamburi Investment Partners | Lowland Investment vs. Magnora ASA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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