Correlation Between Mobile Max and Gencell
Can any of the company-specific risk be diversified away by investing in both Mobile Max and Gencell 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 Mobile Max and Gencell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Max M and Gencell, you can compare the effects of market volatilities on Mobile Max and Gencell 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 Mobile Max with a short position of Gencell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Gencell.
Diversification Opportunities for Mobile Max and Gencell
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobile and Gencell is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Gencell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencell and Mobile Max 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 Mobile Max M are associated (or correlated) with Gencell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencell has no effect on the direction of Mobile Max i.e., Mobile Max and Gencell go up and down completely randomly.
Pair Corralation between Mobile Max and Gencell
Assuming the 90 days trading horizon Mobile Max M is expected to under-perform the Gencell. But the stock apears to be less risky and, when comparing its historical volatility, Mobile Max M is 1.46 times less risky than Gencell. The stock trades about -0.07 of its potential returns per unit of risk. The Gencell is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,640 in Gencell on September 12, 2024 and sell it today you would earn a total of 180.00 from holding Gencell or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Max M vs. Gencell
Performance |
| Timeline |
| Mobile Max M |
| Gencell |
Mobile Max and Gencell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Max and Gencell
The main advantage of trading using opposite Mobile Max and Gencell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Max position performs unexpectedly, Gencell 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 Gencell will offset losses from the drop in Gencell's long position.| Mobile Max vs. Alrov Properties Lodgings | Mobile Max vs. Global Knafaim Leasing | Mobile Max vs. Multi Retail Group | Mobile Max vs. Millennium Food Tech LP |
| Gencell vs. Iargento Hi Tech | Gencell vs. Retailors | Gencell vs. Ilex Medical | Gencell vs. Harel Insurance Investments |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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