Correlation Between Mobix Labs and Stepan
Can any of the company-specific risk be diversified away by investing in both Mobix Labs and Stepan 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 Mobix Labs and Stepan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobix Labs and Stepan Company, you can compare the effects of market volatilities on Mobix Labs and Stepan 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 Mobix Labs with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobix Labs and Stepan.
Diversification Opportunities for Mobix Labs and Stepan
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mobix and Stepan is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and Mobix Labs 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 Mobix Labs are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of Mobix Labs i.e., Mobix Labs and Stepan go up and down completely randomly.
Pair Corralation between Mobix Labs and Stepan
Given the investment horizon of 90 days Mobix Labs is expected to under-perform the Stepan. In addition to that, Mobix Labs is 3.65 times more volatile than Stepan Company. It trades about -0.02 of its total potential returns per unit of risk. Stepan Company is currently generating about -0.03 per unit of volatility. If you would invest 10,793 in Stepan Company on September 2, 2024 and sell it today you would lose (3,103) from holding Stepan Company or give up 28.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobix Labs vs. Stepan Company
Performance |
| Timeline |
| Mobix Labs |
| Stepan Company |
Mobix Labs and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobix Labs and Stepan
The main advantage of trading using opposite Mobix Labs and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobix Labs position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| Mobix Labs vs. Tower Semiconductor | Mobix Labs vs. Corporacion America Airports | Mobix Labs vs. Porvair plc | Mobix Labs vs. Globalfoundries |
| Stepan vs. Linde plc Ordinary | Stepan vs. Air Products and | Stepan vs. Aquagold International | Stepan vs. Thrivent High Yield |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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