Correlation Between MOBILE FACTORY and Air Transport
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and Air Transport 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 MOBILE FACTORY and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and Air Transport Services, you can compare the effects of market volatilities on MOBILE FACTORY and Air Transport 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 MOBILE FACTORY with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and Air Transport.
Diversification Opportunities for MOBILE FACTORY and Air Transport
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MOBILE and Air is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and Air Transport go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and Air Transport
Assuming the 90 days horizon MOBILE FACTORY INC is expected to under-perform the Air Transport. In addition to that, MOBILE FACTORY is 2.45 times more volatile than Air Transport Services. It trades about -0.07 of its total potential returns per unit of risk. Air Transport Services is currently generating about 0.2 per unit of volatility. If you would invest 2,080 in Air Transport Services on October 14, 2024 and sell it today you would earn a total of 40.00 from holding Air Transport Services or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. Air Transport Services
Performance |
| Timeline |
| MOBILE FACTORY INC |
| Air Transport Services |
MOBILE FACTORY and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and Air Transport
The main advantage of trading using opposite MOBILE FACTORY and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| MOBILE FACTORY vs. Linedata Services SA | MOBILE FACTORY vs. Scottish Mortgage Investment | MOBILE FACTORY vs. Guangdong Investment Limited | MOBILE FACTORY vs. Alliance Data Systems |
| Air Transport vs. UNIDOC HEALTH P | Air Transport vs. EBRO FOODS | Air Transport vs. BG Foods | Air Transport vs. Siemens Healthineers AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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