Correlation Between Canaan and Mobix Labs
Can any of the company-specific risk be diversified away by investing in both Canaan and Mobix Labs 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 Canaan and Mobix Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaan Inc and Mobix Labs, you can compare the effects of market volatilities on Canaan and Mobix Labs 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 Canaan with a short position of Mobix Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaan and Mobix Labs.
Diversification Opportunities for Canaan and Mobix Labs
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canaan and Mobix is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs and Canaan 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 Canaan Inc are associated (or correlated) with Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of Canaan i.e., Canaan and Mobix Labs go up and down completely randomly.
Pair Corralation between Canaan and Mobix Labs
Considering the 90-day investment horizon Canaan Inc is expected to generate 0.95 times more return on investment than Mobix Labs. However, Canaan Inc is 1.05 times less risky than Mobix Labs. It trades about 0.04 of its potential returns per unit of risk. Mobix Labs is currently generating about -0.03 per unit of risk. If you would invest 204.00 in Canaan Inc on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Canaan Inc or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaan Inc vs. Mobix Labs
Performance |
| Timeline |
| Canaan Inc |
| Mobix Labs |
Canaan and Mobix Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaan and Mobix Labs
The main advantage of trading using opposite Canaan and Mobix Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaan position performs unexpectedly, Mobix Labs 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 Mobix Labs will offset losses from the drop in Mobix Labs' long position.| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
| Mobix Labs vs. Stepan Company | Mobix Labs vs. Highway Holdings Limited | Mobix Labs vs. Everspin Technologies | Mobix Labs vs. Parker Hannifin |
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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