Correlation Between HIAG Immobilien and Mobimo Hldg
Can any of the company-specific risk be diversified away by investing in both HIAG Immobilien and Mobimo Hldg 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 HIAG Immobilien and Mobimo Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIAG Immobilien Holding and Mobimo Hldg, you can compare the effects of market volatilities on HIAG Immobilien and Mobimo Hldg 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 HIAG Immobilien with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIAG Immobilien and Mobimo Hldg.
Diversification Opportunities for HIAG Immobilien and Mobimo Hldg
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HIAG and Mobimo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding HIAG Immobilien Holding and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and HIAG Immobilien 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 HIAG Immobilien Holding are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of HIAG Immobilien i.e., HIAG Immobilien and Mobimo Hldg go up and down completely randomly.
Pair Corralation between HIAG Immobilien and Mobimo Hldg
Assuming the 90 days trading horizon HIAG Immobilien is expected to generate 7.31 times less return on investment than Mobimo Hldg. But when comparing it to its historical volatility, HIAG Immobilien Holding is 1.15 times less risky than Mobimo Hldg. It trades about 0.04 of its potential returns per unit of risk. Mobimo Hldg is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 27,100 in Mobimo Hldg on August 28, 2024 and sell it today you would earn a total of 1,100 from holding Mobimo Hldg or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HIAG Immobilien Holding vs. Mobimo Hldg
Performance |
| Timeline |
| HIAG Immobilien Holding |
| Mobimo Hldg |
HIAG Immobilien and Mobimo Hldg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIAG Immobilien and Mobimo Hldg
The main advantage of trading using opposite HIAG Immobilien and Mobimo Hldg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIAG Immobilien position performs unexpectedly, Mobimo Hldg 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 Mobimo Hldg will offset losses from the drop in Mobimo Hldg's long position.| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
| Mobimo Hldg vs. PSP Swiss Property | Mobimo Hldg vs. Swiss Prime Site | Mobimo Hldg vs. Helvetia Holding AG | Mobimo Hldg vs. Banque Cantonale |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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