Correlation Between Booking Holdings and Bemobi Mobile
Can any of the company-specific risk be diversified away by investing in both Booking Holdings and Bemobi Mobile 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 Booking Holdings and Bemobi Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booking Holdings and Bemobi Mobile Tech, you can compare the effects of market volatilities on Booking Holdings and Bemobi Mobile 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 Booking Holdings with a short position of Bemobi Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booking Holdings and Bemobi Mobile.
Diversification Opportunities for Booking Holdings and Bemobi Mobile
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Booking and Bemobi is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech and Booking Holdings 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 Booking Holdings are associated (or correlated) with Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of Booking Holdings i.e., Booking Holdings and Bemobi Mobile go up and down completely randomly.
Pair Corralation between Booking Holdings and Bemobi Mobile
Assuming the 90 days trading horizon Booking Holdings is expected to generate 1.15 times more return on investment than Bemobi Mobile. However, Booking Holdings is 1.15 times more volatile than Bemobi Mobile Tech. It trades about 0.36 of its potential returns per unit of risk. Bemobi Mobile Tech is currently generating about -0.2 per unit of risk. If you would invest 15,776 in Booking Holdings on September 4, 2024 and sell it today you would earn a total of 2,379 from holding Booking Holdings or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Booking Holdings vs. Bemobi Mobile Tech
Performance |
| Timeline |
| Booking Holdings |
| Bemobi Mobile Tech |
Booking Holdings and Bemobi Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Booking Holdings and Bemobi Mobile
The main advantage of trading using opposite Booking Holdings and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booking Holdings position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.| Booking Holdings vs. Bemobi Mobile Tech | Booking Holdings vs. Fidelity National Information | Booking Holdings vs. Extra Space Storage | Booking Holdings vs. Automatic Data Processing |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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