Correlation Between Capgemini and Mobi724 Global
Can any of the company-specific risk be diversified away by investing in both Capgemini and Mobi724 Global 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 Capgemini and Mobi724 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capgemini SE ADR and Mobi724 Global Solutions, you can compare the effects of market volatilities on Capgemini and Mobi724 Global 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 Capgemini with a short position of Mobi724 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and Mobi724 Global.
Diversification Opportunities for Capgemini and Mobi724 Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capgemini and Mobi724 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE ADR and Mobi724 Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobi724 Global Solutions and Capgemini 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 Capgemini SE ADR are associated (or correlated) with Mobi724 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobi724 Global Solutions has no effect on the direction of Capgemini i.e., Capgemini and Mobi724 Global go up and down completely randomly.
Pair Corralation between Capgemini and Mobi724 Global
Assuming the 90 days horizon Capgemini SE ADR is expected to under-perform the Mobi724 Global. In addition to that, Capgemini is 1.07 times more volatile than Mobi724 Global Solutions. It trades about -0.08 of its total potential returns per unit of risk. Mobi724 Global Solutions is currently generating about -0.03 per unit of volatility. If you would invest 0.18 in Mobi724 Global Solutions on August 28, 2024 and sell it today you would lose (0.02) from holding Mobi724 Global Solutions or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capgemini SE ADR vs. Mobi724 Global Solutions
Performance |
| Timeline |
| Capgemini SE ADR |
| Mobi724 Global Solutions |
Capgemini and Mobi724 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capgemini and Mobi724 Global
The main advantage of trading using opposite Capgemini and Mobi724 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini position performs unexpectedly, Mobi724 Global 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 Mobi724 Global will offset losses from the drop in Mobi724 Global's long position.| Capgemini vs. Soluna Holdings Preferred | Capgemini vs. Crypto Co | Capgemini vs. ASGN Inc | Capgemini vs. Soluna Holdings |
| Mobi724 Global vs. POSaBIT Systems Corp | Mobi724 Global vs. Appen Limited | Mobi724 Global vs. Deveron Corp | Mobi724 Global vs. Appen Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |