Correlation Between Alfa Financial and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Alfa Financial 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 Alfa Financial and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and mobilezone holding AG, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and Mobilezone Holding.
Diversification Opportunities for Alfa Financial and Mobilezone Holding
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alfa and Mobilezone is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Alfa Financial and Mobilezone Holding
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 2.91 times more return on investment than Mobilezone Holding. However, Alfa Financial is 2.91 times more volatile than mobilezone holding AG. It trades about 0.08 of its potential returns per unit of risk. mobilezone holding AG is currently generating about 0.0 per unit of risk. If you would invest 21,500 in Alfa Financial Software on August 30, 2024 and sell it today you would earn a total of 850.00 from holding Alfa Financial Software or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alfa Financial Software vs. mobilezone holding AG
Performance |
| Timeline |
| Alfa Financial Software |
| mobilezone holding |
Alfa Financial and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and Mobilezone Holding
The main advantage of trading using opposite Alfa Financial and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Samsung Electronics Co | Alfa Financial vs. Samsung Electronics Co | Alfa Financial vs. Hyundai Motor | Alfa Financial vs. Toyota Motor Corp |
| Mobilezone Holding vs. CAP LEASE AVIATION | Mobilezone Holding vs. Wheaton Precious Metals | Mobilezone Holding vs. T Mobile | Mobilezone Holding vs. Hochschild Mining plc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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