Correlation Between Intermediate Capital and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Intermediate Capital 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 Intermediate Capital and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Capital Group and mobilezone holding AG, you can compare the effects of market volatilities on Intermediate Capital 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 Intermediate Capital with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate Capital and Mobilezone Holding.
Diversification Opportunities for Intermediate Capital and Mobilezone Holding
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intermediate and Mobilezone is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Capital Group and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Intermediate Capital 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 Intermediate Capital Group 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 Intermediate Capital i.e., Intermediate Capital and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Intermediate Capital and Mobilezone Holding
Assuming the 90 days trading horizon Intermediate Capital Group is expected to under-perform the Mobilezone Holding. In addition to that, Intermediate Capital is 2.91 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 0.15 per unit of volatility. If you would invest 1,376 in mobilezone holding AG on August 25, 2024 and sell it today you would earn a total of 36.00 from holding mobilezone holding AG or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermediate Capital Group vs. mobilezone holding AG
Performance |
| Timeline |
| Intermediate Capital |
| mobilezone holding |
Intermediate Capital and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate Capital and Mobilezone Holding
The main advantage of trading using opposite Intermediate Capital and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate Capital 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.| Intermediate Capital vs. Catalyst Media Group | Intermediate Capital vs. Oncimmune Holdings plc | Intermediate Capital vs. Invesco Health Care | Intermediate Capital vs. Coor Service Management |
| Mobilezone Holding vs. Samsung Electronics Co | Mobilezone Holding vs. Samsung Electronics Co | Mobilezone Holding vs. Hyundai Motor | Mobilezone Holding vs. Toyota Motor Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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