Correlation Between EJF Investments and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both EJF Investments 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 EJF Investments and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EJF Investments and mobilezone holding AG, you can compare the effects of market volatilities on EJF Investments 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 EJF Investments with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of EJF Investments and Mobilezone Holding.
Diversification Opportunities for EJF Investments and Mobilezone Holding
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EJF and Mobilezone is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding EJF Investments and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and EJF Investments 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 EJF Investments 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 EJF Investments i.e., EJF Investments and Mobilezone Holding go up and down completely randomly.
Pair Corralation between EJF Investments and Mobilezone Holding
Assuming the 90 days trading horizon EJF Investments is expected to under-perform the Mobilezone Holding. In addition to that, EJF Investments is 1.63 times more volatile than mobilezone holding AG. It trades about -0.01 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.22 per unit of volatility. If you would invest 1,075 in mobilezone holding AG on November 4, 2024 and sell it today you would earn a total of 63.00 from holding mobilezone holding AG or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EJF Investments vs. mobilezone holding AG
Performance |
| Timeline |
| EJF Investments |
| mobilezone holding |
EJF Investments and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EJF Investments and Mobilezone Holding
The main advantage of trading using opposite EJF Investments and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EJF Investments 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.| EJF Investments vs. Leroy Seafood Group | EJF Investments vs. Edita Food Industries | EJF Investments vs. Virgin Wines UK | EJF Investments vs. Austevoll Seafood ASA |
| Mobilezone Holding vs. Datagroup SE | Mobilezone Holding vs. McEwen Mining | Mobilezone Holding vs. Automatic Data Processing | Mobilezone Holding vs. Aeorema Communications Plc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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