Correlation Between Mobius Investment and MG Credit
Can any of the company-specific risk be diversified away by investing in both Mobius Investment and MG Credit 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 Mobius Investment and MG Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobius Investment Trust and MG Credit Income, you can compare the effects of market volatilities on Mobius Investment and MG Credit 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 Mobius Investment with a short position of MG Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobius Investment and MG Credit.
Diversification Opportunities for Mobius Investment and MG Credit
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mobius and MGCI is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mobius Investment Trust and MG Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MG Credit Income and Mobius Investment 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 Mobius Investment Trust are associated (or correlated) with MG Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MG Credit Income has no effect on the direction of Mobius Investment i.e., Mobius Investment and MG Credit go up and down completely randomly.
Pair Corralation between Mobius Investment and MG Credit
Assuming the 90 days trading horizon Mobius Investment is expected to generate 1.1 times less return on investment than MG Credit. But when comparing it to its historical volatility, Mobius Investment Trust is 1.28 times less risky than MG Credit. It trades about 0.05 of its potential returns per unit of risk. MG Credit Income is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,224 in MG Credit Income on November 6, 2024 and sell it today you would earn a total of 1,356 from holding MG Credit Income or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobius Investment Trust vs. MG Credit Income
Performance |
| Timeline |
| Mobius Investment Trust |
| MG Credit Income |
Mobius Investment and MG Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobius Investment and MG Credit
The main advantage of trading using opposite Mobius Investment and MG Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobius Investment position performs unexpectedly, MG Credit 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 MG Credit will offset losses from the drop in MG Credit's long position.| Mobius Investment vs. TBC Bank Group | Mobius Investment vs. Zurich Insurance Group | Mobius Investment vs. Worldwide Healthcare Trust | Mobius Investment vs. Moneta Money Bank |
| MG Credit vs. Cornish Metals | MG Credit vs. CleanTech Lithium plc | MG Credit vs. Jacquet Metal Service | MG Credit vs. Metals Exploration Plc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |