Correlation Between Mobileye Global and Knorr Bremse
Can any of the company-specific risk be diversified away by investing in both Mobileye Global and Knorr Bremse 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 Mobileye Global and Knorr Bremse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobileye Global Class and Knorr Bremse Aktiengesellschaft, you can compare the effects of market volatilities on Mobileye Global and Knorr Bremse 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 Mobileye Global with a short position of Knorr Bremse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Knorr Bremse.
Diversification Opportunities for Mobileye Global and Knorr Bremse
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobileye and Knorr is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Knorr Bremse Aktiengesellschaf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knorr Bremse Aktieng and Mobileye Global 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 Mobileye Global Class are associated (or correlated) with Knorr Bremse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knorr Bremse Aktieng has no effect on the direction of Mobileye Global i.e., Mobileye Global and Knorr Bremse go up and down completely randomly.
Pair Corralation between Mobileye Global and Knorr Bremse
Given the investment horizon of 90 days Mobileye Global Class is expected to generate 3.51 times more return on investment than Knorr Bremse. However, Mobileye Global is 3.51 times more volatile than Knorr Bremse Aktiengesellschaft. It trades about 0.1 of its potential returns per unit of risk. Knorr Bremse Aktiengesellschaft is currently generating about 0.01 per unit of risk. If you would invest 1,693 in Mobileye Global Class on September 13, 2024 and sell it today you would earn a total of 125.00 from holding Mobileye Global Class or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mobileye Global Class vs. Knorr Bremse Aktiengesellschaf
Performance |
| Timeline |
| Mobileye Global Class |
| Knorr Bremse Aktieng |
Mobileye Global and Knorr Bremse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileye Global and Knorr Bremse
The main advantage of trading using opposite Mobileye Global and Knorr Bremse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global position performs unexpectedly, Knorr Bremse 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 Knorr Bremse will offset losses from the drop in Knorr Bremse's long position.| Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings Corp |
| Knorr Bremse vs. 4 Less Group | Knorr Bremse vs. Foresight Autonomous Holdings | Knorr Bremse vs. Goodyear Tire Rubber | Knorr Bremse vs. Luminar Technologies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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