Correlation Between Crunchfish and MOBA Network
Can any of the company-specific risk be diversified away by investing in both Crunchfish and MOBA Network 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 Crunchfish and MOBA Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crunchfish AB and MOBA Network publ, you can compare the effects of market volatilities on Crunchfish and MOBA Network 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 Crunchfish with a short position of MOBA Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crunchfish and MOBA Network.
Diversification Opportunities for Crunchfish and MOBA Network
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crunchfish and MOBA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Crunchfish AB and MOBA Network publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBA Network publ and Crunchfish 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 Crunchfish AB are associated (or correlated) with MOBA Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBA Network publ has no effect on the direction of Crunchfish i.e., Crunchfish and MOBA Network go up and down completely randomly.
Pair Corralation between Crunchfish and MOBA Network
Assuming the 90 days trading horizon Crunchfish AB is expected to under-perform the MOBA Network. In addition to that, Crunchfish is 1.93 times more volatile than MOBA Network publ. It trades about -0.2 of its total potential returns per unit of risk. MOBA Network publ is currently generating about -0.16 per unit of volatility. If you would invest 905.00 in MOBA Network publ on September 3, 2024 and sell it today you would lose (80.00) from holding MOBA Network publ or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crunchfish AB vs. MOBA Network publ
Performance |
| Timeline |
| Crunchfish AB |
| MOBA Network publ |
Crunchfish and MOBA Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crunchfish and MOBA Network
The main advantage of trading using opposite Crunchfish and MOBA Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crunchfish position performs unexpectedly, MOBA Network 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 MOBA Network will offset losses from the drop in MOBA Network's long position.| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto AB |
| MOBA Network vs. Kancera AB | MOBA Network vs. Terranet AB | MOBA Network vs. Divio Technologies AB | MOBA Network vs. Cantargia AB |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |