Correlation Between Bemobi Mobile and New Oriental
Can any of the company-specific risk be diversified away by investing in both Bemobi Mobile and New Oriental 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 New Oriental 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 New Oriental Education, you can compare the effects of market volatilities on Bemobi Mobile and New Oriental 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 New Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and New Oriental.
Diversification Opportunities for Bemobi Mobile and New Oriental
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bemobi and New is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and New Oriental Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Oriental Education 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 New Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Oriental Education has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and New Oriental go up and down completely randomly.
Pair Corralation between Bemobi Mobile and New Oriental
Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to generate 0.64 times more return on investment than New Oriental. However, Bemobi Mobile Tech is 1.57 times less risky than New Oriental. It trades about 0.02 of its potential returns per unit of risk. New Oriental Education is currently generating about -0.01 per unit of risk. If you would invest 1,246 in Bemobi Mobile Tech on October 22, 2024 and sell it today you would earn a total of 84.00 from holding Bemobi Mobile Tech or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Bemobi Mobile Tech vs. New Oriental Education
Performance |
| Timeline |
| Bemobi Mobile Tech |
| New Oriental Education |
Bemobi Mobile and New Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bemobi Mobile and New Oriental
The main advantage of trading using opposite Bemobi Mobile and New Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bemobi Mobile position performs unexpectedly, New Oriental 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 New Oriental will offset losses from the drop in New Oriental's long position.| Bemobi Mobile vs. Intelbras SA | Bemobi Mobile vs. Neogrid Participaes SA | Bemobi Mobile vs. Mliuz SA | Bemobi Mobile vs. Locaweb Servios de |
| New Oriental vs. Autohome | New Oriental vs. Ryanair Holdings plc | New Oriental vs. Healthpeak Properties | New Oriental vs. Elevance Health, |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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