Correlation Between Mobile Max and Plaza Centers
Can any of the company-specific risk be diversified away by investing in both Mobile Max and Plaza Centers 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 Plaza Centers 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 Plaza Centers NV, you can compare the effects of market volatilities on Mobile Max and Plaza Centers 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 Plaza Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Plaza Centers.
Diversification Opportunities for Mobile Max and Plaza Centers
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobile and Plaza is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Plaza Centers NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Centers NV 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 Plaza Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Centers NV has no effect on the direction of Mobile Max i.e., Mobile Max and Plaza Centers go up and down completely randomly.
Pair Corralation between Mobile Max and Plaza Centers
Assuming the 90 days trading horizon Mobile Max M is expected to generate 0.52 times more return on investment than Plaza Centers. However, Mobile Max M is 1.93 times less risky than Plaza Centers. It trades about 0.49 of its potential returns per unit of risk. Plaza Centers NV is currently generating about 0.07 per unit of risk. If you would invest 3,070 in Mobile Max M on October 22, 2024 and sell it today you would earn a total of 1,350 from holding Mobile Max M or generate 43.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Mobile Max M vs. Plaza Centers NV
Performance |
| Timeline |
| Mobile Max M |
| Plaza Centers NV |
Mobile Max and Plaza Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Max and Plaza Centers
The main advantage of trading using opposite Mobile Max and Plaza Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Max position performs unexpectedly, Plaza Centers 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 Plaza Centers will offset losses from the drop in Plaza Centers' long position.| Mobile Max vs. Blender Financial Technologies | Mobile Max vs. Abra Information Technologies | Mobile Max vs. Israel Discount Bank | Mobile Max vs. Electreon Wireless |
| Plaza Centers vs. Mobile Max M | Plaza Centers vs. Rapac Communication Infrastructure | Plaza Centers vs. Scope Metals Group | Plaza Centers vs. Israel Discount Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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