Correlation Between Mobile World and POST TELECOMMU
Can any of the company-specific risk be diversified away by investing in both Mobile World and POST TELECOMMU 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 Mobile World and POST TELECOMMU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile World Investment and POST TELECOMMU, you can compare the effects of market volatilities on Mobile World and POST TELECOMMU 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 Mobile World with a short position of POST TELECOMMU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile World and POST TELECOMMU.
Diversification Opportunities for Mobile World and POST TELECOMMU
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobile and POST is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mobile World Investment and POST TELECOMMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POST TELECOMMU and Mobile World 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 Mobile World Investment are associated (or correlated) with POST TELECOMMU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POST TELECOMMU has no effect on the direction of Mobile World i.e., Mobile World and POST TELECOMMU go up and down completely randomly.
Pair Corralation between Mobile World and POST TELECOMMU
Assuming the 90 days trading horizon Mobile World Investment is expected to generate 0.7 times more return on investment than POST TELECOMMU. However, Mobile World Investment is 1.43 times less risky than POST TELECOMMU. It trades about 0.03 of its potential returns per unit of risk. POST TELECOMMU is currently generating about -0.01 per unit of risk. If you would invest 5,784,022 in Mobile World Investment on September 3, 2024 and sell it today you would earn a total of 265,978 from holding Mobile World Investment or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.92% |
| Values | Daily Returns |
Mobile World Investment vs. POST TELECOMMU
Performance |
| Timeline |
| Mobile World Investment |
| POST TELECOMMU |
Mobile World and POST TELECOMMU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile World and POST TELECOMMU
The main advantage of trading using opposite Mobile World and POST TELECOMMU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile World position performs unexpectedly, POST TELECOMMU 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 POST TELECOMMU will offset losses from the drop in POST TELECOMMU's long position.| Mobile World vs. HVC Investment and | Mobile World vs. Vietnam JSCmmercial Bank | Mobile World vs. Petrolimex International Trading | Mobile World vs. Construction And Investment |
| POST TELECOMMU vs. Century Synthetic Fiber | POST TELECOMMU vs. Telecoms Informatics JSC | POST TELECOMMU vs. Elcom Technology Communications | POST TELECOMMU vs. Petrolimex Insurance Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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