Correlation Between Gencell and Mobile Max
Can any of the company-specific risk be diversified away by investing in both Gencell and Mobile Max 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 Gencell and Mobile Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gencell and Mobile Max M, you can compare the effects of market volatilities on Gencell and Mobile Max 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 Gencell with a short position of Mobile Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gencell and Mobile Max.
Diversification Opportunities for Gencell and Mobile Max
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gencell and Mobile is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gencell and Mobile Max M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Max M and Gencell 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 Gencell are associated (or correlated) with Mobile Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Max M has no effect on the direction of Gencell i.e., Gencell and Mobile Max go up and down completely randomly.
Pair Corralation between Gencell and Mobile Max
Assuming the 90 days trading horizon Gencell is expected to generate 0.85 times more return on investment than Mobile Max. However, Gencell is 1.18 times less risky than Mobile Max. It trades about -0.04 of its potential returns per unit of risk. Mobile Max M is currently generating about -0.28 per unit of risk. If you would invest 5,160 in Gencell on September 4, 2024 and sell it today you would lose (90.00) from holding Gencell or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gencell vs. Mobile Max M
Performance |
| Timeline |
| Gencell |
| Mobile Max M |
Gencell and Mobile Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gencell and Mobile Max
The main advantage of trading using opposite Gencell and Mobile Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gencell position performs unexpectedly, Mobile Max 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 Mobile Max will offset losses from the drop in Mobile Max's long position.| Gencell vs. Mobile Max M | Gencell vs. Netz Hotels | Gencell vs. Harel Insurance Investments | Gencell vs. Kvasir Education |
| Mobile Max vs. TAT Technologies | Mobile Max vs. Magic Software Enterprises | Mobile Max vs. Spuntech | Mobile Max vs. Storage Drop Storage |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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