Correlation Between Mobileye Global and Knorr-Bremse Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Mobileye Global and Knorr-Bremse Aktiengesellscha 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 Aktiengesellscha 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 Aktiengesellscha 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 Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Knorr-Bremse Aktiengesellscha.
Diversification Opportunities for Mobileye Global and Knorr-Bremse Aktiengesellscha
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mobileye and Knorr-Bremse is -0.7. 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 Aktiengesellscha 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 Aktiengesellscha. 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 Aktiengesellscha has no effect on the direction of Mobileye Global i.e., Mobileye Global and Knorr-Bremse Aktiengesellscha go up and down completely randomly.
Pair Corralation between Mobileye Global and Knorr-Bremse Aktiengesellscha
Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the Knorr-Bremse Aktiengesellscha. In addition to that, Mobileye Global is 2.65 times more volatile than Knorr Bremse Aktiengesellschaft. It trades about -0.06 of its total potential returns per unit of risk. Knorr Bremse Aktiengesellschaft is currently generating about 0.07 per unit of volatility. If you would invest 1,476 in Knorr Bremse Aktiengesellschaft on September 4, 2024 and sell it today you would earn a total of 410.00 from holding Knorr Bremse Aktiengesellschaft or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Mobileye Global Class vs. Knorr Bremse Aktiengesellschaf
Performance |
| Timeline |
| Mobileye Global Class |
| Knorr-Bremse Aktiengesellscha |
Mobileye Global and Knorr-Bremse Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobileye Global and Knorr-Bremse Aktiengesellscha
The main advantage of trading using opposite Mobileye Global and Knorr-Bremse Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobileye Global position performs unexpectedly, Knorr-Bremse Aktiengesellscha 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 Aktiengesellscha will offset losses from the drop in Knorr-Bremse Aktiengesellscha's long position.| Mobileye Global vs. Quantumscape Corp | Mobileye Global vs. Innoviz Technologies | Mobileye Global vs. Aeva Technologies | Mobileye Global vs. Hyliion Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |