Correlation Between Naspers and Mobiquity Technologies

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

Diversification Opportunities for Naspers and Mobiquity Technologies

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Naspers and Mobiquity is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Naspers Ltd ADR and Mobiquity Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobiquity Technologies and Naspers 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 Naspers Ltd ADR are associated (or correlated) with Mobiquity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobiquity Technologies has no effect on the direction of Naspers i.e., Naspers and Mobiquity Technologies go up and down completely randomly.

Pair Corralation between Naspers and Mobiquity Technologies

If you would invest  8.17  in Mobiquity Technologies on November 1, 2024 and sell it today you would earn a total of  0.00  from holding Mobiquity Technologies or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Naspers Ltd ADR  vs.  Mobiquity Technologies

 Performance 
       Timeline  
Naspers Ltd ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Naspers Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Naspers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Mobiquity Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mobiquity Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Mobiquity Technologies is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Naspers and Mobiquity Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Naspers and Mobiquity Technologies

The main advantage of trading using opposite Naspers and Mobiquity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naspers position performs unexpectedly, Mobiquity Technologies 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 Mobiquity Technologies will offset losses from the drop in Mobiquity Technologies' long position.
The idea behind Naspers Ltd ADR and Mobiquity Technologies 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.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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