Correlation Between Future Mobility and MBank SA
Can any of the company-specific risk be diversified away by investing in both Future Mobility and MBank SA 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 Future Mobility and MBank SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Mobility Solutions and mBank SA, you can compare the effects of market volatilities on Future Mobility and MBank SA 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 Future Mobility with a short position of MBank SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Mobility and MBank SA.
Diversification Opportunities for Future Mobility and MBank SA
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Future and MBank is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Future Mobility Solutions and mBank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mBank SA and Future Mobility 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 Future Mobility Solutions are associated (or correlated) with MBank SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mBank SA has no effect on the direction of Future Mobility i.e., Future Mobility and MBank SA go up and down completely randomly.
Pair Corralation between Future Mobility and MBank SA
If you would invest 3,988 in mBank SA on September 14, 2024 and sell it today you would earn a total of 0.00 from holding mBank SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Mobility Solutions vs. mBank SA
Performance |
| Timeline |
| Future Mobility Solutions |
| mBank SA |
Future Mobility and MBank SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Mobility and MBank SA
The main advantage of trading using opposite Future Mobility and MBank SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Mobility position performs unexpectedly, MBank SA 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 MBank SA will offset losses from the drop in MBank SA's long position.| Future Mobility vs. Thor Industries | Future Mobility vs. Brunswick | Future Mobility vs. Harley Davidson | Future Mobility vs. BRP Inc |
| MBank SA vs. Zions Bancorporation | MBank SA vs. Huntington Bancshares Incorporated | MBank SA vs. Comerica | MBank SA vs. Western Alliance Bancorporation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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