Correlation Between Mobix Labs and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Mobix Labs and Mesa Air 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 Mesa Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobix Labs and Mesa Air Group, you can compare the effects of market volatilities on Mobix Labs and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobix Labs and Mesa Air.
Diversification Opportunities for Mobix Labs and Mesa Air
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobix and Mesa is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air Group 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Mobix Labs i.e., Mobix Labs and Mesa Air go up and down completely randomly.
Pair Corralation between Mobix Labs and Mesa Air
Assuming the 90 days horizon Mobix Labs is expected to generate 7.48 times more return on investment than Mesa Air. However, Mobix Labs is 7.48 times more volatile than Mesa Air Group. It trades about 0.09 of its potential returns per unit of risk. Mesa Air Group is currently generating about 0.03 per unit of risk. If you would invest 10.00 in Mobix Labs on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Mobix Labs or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.16% |
| Values | Daily Returns |
Mobix Labs vs. Mesa Air Group
Performance |
| Timeline |
| Mobix Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Mesa Air Group |
Mobix Labs and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobix Labs and Mesa Air
The main advantage of trading using opposite Mobix Labs and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobix Labs position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Mobix Labs vs. Braskem SA Class | Mobix Labs vs. Ecovyst | Mobix Labs vs. Zoom Video Communications | Mobix Labs vs. Harmony Gold Mining |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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