Correlation Between MOBA Network and Greater Than
Can any of the company-specific risk be diversified away by investing in both MOBA Network and Greater Than 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 MOBA Network and Greater Than into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBA Network publ and Greater Than AB, you can compare the effects of market volatilities on MOBA Network and Greater Than 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 MOBA Network with a short position of Greater Than. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBA Network and Greater Than.
Diversification Opportunities for MOBA Network and Greater Than
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOBA and Greater is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MOBA Network publ and Greater Than AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Than AB and MOBA Network 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 MOBA Network publ are associated (or correlated) with Greater Than. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Than AB has no effect on the direction of MOBA Network i.e., MOBA Network and Greater Than go up and down completely randomly.
Pair Corralation between MOBA Network and Greater Than
Assuming the 90 days trading horizon MOBA Network publ is expected to generate 0.52 times more return on investment than Greater Than. However, MOBA Network publ is 1.92 times less risky than Greater Than. It trades about -0.27 of its potential returns per unit of risk. Greater Than AB is currently generating about -0.27 per unit of risk. If you would invest 945.00 in MOBA Network publ on August 29, 2024 and sell it today you would lose (140.00) from holding MOBA Network publ or give up 14.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBA Network publ vs. Greater Than AB
Performance |
| Timeline |
| MOBA Network publ |
| Greater Than AB |
MOBA Network and Greater Than Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBA Network and Greater Than
The main advantage of trading using opposite MOBA Network and Greater Than positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBA Network position performs unexpectedly, Greater Than 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 Greater Than will offset losses from the drop in Greater Than's long position.| MOBA Network vs. Spectrumone publ AB | MOBA Network vs. Media and Games | MOBA Network vs. Enersize Oy | MOBA Network vs. Cantargia AB |
| Greater Than vs. Spectrumone publ AB | Greater Than vs. Media and Games | Greater Than vs. Enersize Oy | Greater Than vs. Cantargia AB |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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