Correlation Between Bemobi Mobile and Booking Holdings
Can any of the company-specific risk be diversified away by investing in both Bemobi Mobile and Booking Holdings 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 Bemobi Mobile and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bemobi Mobile Tech and Booking Holdings, you can compare the effects of market volatilities on Bemobi Mobile and Booking Holdings 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 Bemobi Mobile with a short position of Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and Booking Holdings.
Diversification Opportunities for Bemobi Mobile and Booking Holdings
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bemobi and Booking is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and Bemobi Mobile 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 Bemobi Mobile Tech are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and Booking Holdings go up and down completely randomly.
Pair Corralation between Bemobi Mobile and Booking Holdings
Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to under-perform the Booking Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bemobi Mobile Tech is 1.0 times less risky than Booking Holdings. The stock trades about -0.07 of its potential returns per unit of risk. The Booking Holdings is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 12,204 in Booking Holdings on September 4, 2024 and sell it today you would earn a total of 5,951 from holding Booking Holdings or generate 48.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bemobi Mobile Tech vs. Booking Holdings
Performance |
| Timeline |
| Bemobi Mobile Tech |
| Booking Holdings |
Bemobi Mobile and Booking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bemobi Mobile and Booking Holdings
The main advantage of trading using opposite Bemobi Mobile and Booking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bemobi Mobile position performs unexpectedly, Booking Holdings 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 Booking Holdings will offset losses from the drop in Booking Holdings' long position.| Bemobi Mobile vs. Intelbras SA | Bemobi Mobile vs. Neogrid Participaes SA | Bemobi Mobile vs. Mliuz SA | Bemobi Mobile vs. Locaweb Servios de |
| Booking Holdings vs. Bemobi Mobile Tech | Booking Holdings vs. Fidelity National Information | Booking Holdings vs. Extra Space Storage | Booking Holdings vs. Automatic Data Processing |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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