Correlation Between Bemobi Mobile and Marathon Oil
Can any of the company-specific risk be diversified away by investing in both Bemobi Mobile and Marathon Oil 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 Marathon Oil 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 Marathon Oil, you can compare the effects of market volatilities on Bemobi Mobile and Marathon Oil 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 Marathon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and Marathon Oil.
Diversification Opportunities for Bemobi Mobile and Marathon Oil
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bemobi and Marathon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and Marathon Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Oil 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 Marathon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Oil has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and Marathon Oil go up and down completely randomly.
Pair Corralation between Bemobi Mobile and Marathon Oil
Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to under-perform the Marathon Oil. In addition to that, Bemobi Mobile is 1.18 times more volatile than Marathon Oil. It trades about -0.17 of its total potential returns per unit of risk. Marathon Oil is currently generating about 0.42 per unit of volatility. If you would invest 14,826 in Marathon Oil on August 30, 2024 and sell it today you would earn a total of 2,189 from holding Marathon Oil or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Bemobi Mobile Tech vs. Marathon Oil
Performance |
| Timeline |
| Bemobi Mobile Tech |
| Marathon Oil |
Bemobi Mobile and Marathon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bemobi Mobile and Marathon Oil
The main advantage of trading using opposite Bemobi Mobile and Marathon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bemobi Mobile position performs unexpectedly, Marathon Oil 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 Marathon Oil will offset losses from the drop in Marathon Oil'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 |
| Marathon Oil vs. Petro Rio SA | Marathon Oil vs. Banco BTG Pactual | Marathon Oil vs. Ambipar Participaes e | Marathon Oil vs. Mliuz SA |
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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