Correlation Between Moshi Moshi and Chamni Eye

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Can any of the company-specific risk be diversified away by investing in both Moshi Moshi and Chamni Eye 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 Moshi Moshi and Chamni Eye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moshi Moshi Retail and Chamni Eye PCL, you can compare the effects of market volatilities on Moshi Moshi and Chamni Eye 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 Moshi Moshi with a short position of Chamni Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moshi Moshi and Chamni Eye.

Diversification Opportunities for Moshi Moshi and Chamni Eye

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Moshi and Chamni is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Moshi Moshi Retail and Chamni Eye PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chamni Eye PCL and Moshi Moshi 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 Moshi Moshi Retail are associated (or correlated) with Chamni Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chamni Eye PCL has no effect on the direction of Moshi Moshi i.e., Moshi Moshi and Chamni Eye go up and down completely randomly.

Pair Corralation between Moshi Moshi and Chamni Eye

Assuming the 90 days trading horizon Moshi Moshi Retail is expected to generate 1.38 times more return on investment than Chamni Eye. However, Moshi Moshi is 1.38 times more volatile than Chamni Eye PCL. It trades about -0.13 of its potential returns per unit of risk. Chamni Eye PCL is currently generating about -0.4 per unit of risk. If you would invest  4,850  in Moshi Moshi Retail on September 15, 2024 and sell it today you would lose (250.00) from holding Moshi Moshi Retail or give up 5.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Moshi Moshi Retail  vs.  Chamni Eye PCL

 Performance 
       Timeline  
Moshi Moshi Retail 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Moshi Moshi Retail are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Moshi Moshi may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Chamni Eye PCL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Chamni Eye PCL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Moshi Moshi and Chamni Eye Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Moshi Moshi and Chamni Eye

The main advantage of trading using opposite Moshi Moshi and Chamni Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moshi Moshi position performs unexpectedly, Chamni Eye 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 Chamni Eye will offset losses from the drop in Chamni Eye's long position.
The idea behind Moshi Moshi Retail and Chamni Eye PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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