Correlation Between Mobilezone and VP Bank
Can any of the company-specific risk be diversified away by investing in both Mobilezone and VP Bank 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 VP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mobilezone ag and VP Bank AG, you can compare the effects of market volatilities on Mobilezone and VP Bank 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 VP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone and VP Bank.
Diversification Opportunities for Mobilezone and VP Bank
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobilezone and VPBN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone ag and VP Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VP Bank AG 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 VP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VP Bank AG has no effect on the direction of Mobilezone i.e., Mobilezone and VP Bank go up and down completely randomly.
Pair Corralation between Mobilezone and VP Bank
Assuming the 90 days trading horizon mobilezone ag is expected to generate 0.99 times more return on investment than VP Bank. However, mobilezone ag is 1.01 times less risky than VP Bank. It trades about 0.02 of its potential returns per unit of risk. VP Bank AG is currently generating about -0.01 per unit of risk. If you would invest 1,333 in mobilezone ag on August 25, 2024 and sell it today you would earn a total of 81.00 from holding mobilezone ag or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
mobilezone ag vs. VP Bank AG
Performance |
| Timeline |
| mobilezone ag |
| VP Bank AG |
Mobilezone and VP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone and VP Bank
The main advantage of trading using opposite Mobilezone and VP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone position performs unexpectedly, VP Bank 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 VP Bank will offset losses from the drop in VP Bank's long position.| Mobilezone vs. Procimmo Real Estate | Mobilezone vs. SPDR Dow Jones | Mobilezone vs. Baloise Holding AG | Mobilezone vs. Autoneum Holding AG |
| VP Bank vs. Swissquote Group Holding | VP Bank vs. Banque Cantonale | VP Bank vs. Barry Callebaut AG | VP Bank 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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