Correlation Between Direct Line and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Direct Line and Mobilezone Holding 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 Direct Line and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direct Line Insurance and Mobilezone Holding AG, you can compare the effects of market volatilities on Direct Line and Mobilezone Holding 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 Direct Line with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direct Line and Mobilezone Holding.
Diversification Opportunities for Direct Line and Mobilezone Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Direct and Mobilezone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Direct Line Insurance and Mobilezone Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobilezone Holding and Direct Line 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 Direct Line Insurance are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobilezone Holding has no effect on the direction of Direct Line i.e., Direct Line and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Direct Line and Mobilezone Holding
Assuming the 90 days trading horizon Direct Line Insurance is expected to generate 4.79 times more return on investment than Mobilezone Holding. However, Direct Line is 4.79 times more volatile than Mobilezone Holding AG. It trades about 0.04 of its potential returns per unit of risk. Mobilezone Holding AG is currently generating about 0.06 per unit of risk. If you would invest 198.00 in Direct Line Insurance on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Direct Line Insurance or generate 41.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Direct Line Insurance vs. Mobilezone Holding AG
Performance |
| Timeline |
| Direct Line Insurance |
| Mobilezone Holding |
Direct Line and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direct Line and Mobilezone Holding
The main advantage of trading using opposite Direct Line and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direct Line position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| Direct Line vs. Allianz SE | Direct Line vs. Superior Plus Corp | Direct Line vs. NMI Holdings | Direct Line vs. Origin Agritech |
| Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc | Mobilezone Holding vs. Apple Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |