Correlation Between Mobimo Hldg and Helvetia Holding
Can any of the company-specific risk be diversified away by investing in both Mobimo Hldg and Helvetia Holding 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 Mobimo Hldg and Helvetia Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobimo Hldg and Helvetia Holding AG, you can compare the effects of market volatilities on Mobimo Hldg and Helvetia Holding 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 Mobimo Hldg with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobimo Hldg and Helvetia Holding.
Diversification Opportunities for Mobimo Hldg and Helvetia Holding
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobimo and Helvetia is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mobimo Hldg and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Mobimo Hldg 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 Mobimo Hldg are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Mobimo Hldg i.e., Mobimo Hldg and Helvetia Holding go up and down completely randomly.
Pair Corralation between Mobimo Hldg and Helvetia Holding
Assuming the 90 days trading horizon Mobimo Hldg is expected to generate 0.97 times more return on investment than Helvetia Holding. However, Mobimo Hldg is 1.03 times less risky than Helvetia Holding. It trades about 0.17 of its potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.02 per unit of risk. If you would invest 27,100 in Mobimo Hldg on August 29, 2024 and sell it today you would earn a total of 800.00 from holding Mobimo Hldg or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobimo Hldg vs. Helvetia Holding AG
Performance |
| Timeline |
| Mobimo Hldg |
| Helvetia Holding |
Mobimo Hldg and Helvetia Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobimo Hldg and Helvetia Holding
The main advantage of trading using opposite Mobimo Hldg and Helvetia Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobimo Hldg position performs unexpectedly, Helvetia Holding 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 Helvetia Holding will offset losses from the drop in Helvetia Holding's long position.| Mobimo Hldg vs. PSP Swiss Property | Mobimo Hldg vs. Swiss Prime Site | Mobimo Hldg vs. Helvetia Holding AG | Mobimo Hldg vs. Banque Cantonale |
| Helvetia Holding vs. Swiss Life Holding | Helvetia Holding vs. Baloise Holding AG | Helvetia Holding vs. Swiss Re AG | Helvetia Holding vs. Zurich Insurance Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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