Correlation Between Mobilezone and Berner Kantonalbank
Can any of the company-specific risk be diversified away by investing in both Mobilezone and Berner Kantonalbank 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 Mobilezone and Berner Kantonalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mobilezone ag and Berner Kantonalbank AG, you can compare the effects of market volatilities on Mobilezone and Berner Kantonalbank 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 Mobilezone with a short position of Berner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone and Berner Kantonalbank.
Diversification Opportunities for Mobilezone and Berner Kantonalbank
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mobilezone and Berner is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone ag and Berner Kantonalbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berner Kantonalbank and Mobilezone 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 mobilezone ag are associated (or correlated) with Berner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berner Kantonalbank has no effect on the direction of Mobilezone i.e., Mobilezone and Berner Kantonalbank go up and down completely randomly.
Pair Corralation between Mobilezone and Berner Kantonalbank
Assuming the 90 days trading horizon mobilezone ag is expected to generate 1.71 times more return on investment than Berner Kantonalbank. However, Mobilezone is 1.71 times more volatile than Berner Kantonalbank AG. It trades about 0.17 of its potential returns per unit of risk. Berner Kantonalbank AG is currently generating about 0.04 per unit of risk. If you would invest 1,370 in mobilezone ag on August 25, 2024 and sell it today you would earn a total of 44.00 from holding mobilezone ag or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
mobilezone ag vs. Berner Kantonalbank AG
Performance |
| Timeline |
| mobilezone ag |
| Berner Kantonalbank |
Mobilezone and Berner Kantonalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone and Berner Kantonalbank
The main advantage of trading using opposite Mobilezone and Berner Kantonalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone position performs unexpectedly, Berner Kantonalbank 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 Berner Kantonalbank will offset losses from the drop in Berner Kantonalbank's long position.| Mobilezone vs. Procimmo Real Estate | Mobilezone vs. SPDR Dow Jones | Mobilezone vs. Baloise Holding AG | Mobilezone vs. Autoneum Holding AG |
| Berner Kantonalbank vs. Swissquote Group Holding | Berner Kantonalbank vs. Banque Cantonale | Berner Kantonalbank vs. Barry Callebaut AG | Berner Kantonalbank vs. Vontobel Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |