Correlation Between Swiss Leader and Mobimo Hldg
Can any of the company-specific risk be diversified away by investing in both Swiss Leader and Mobimo Hldg 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 Swiss Leader and Mobimo Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Leader Price and Mobimo Hldg, you can compare the effects of market volatilities on Swiss Leader and Mobimo Hldg 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 Swiss Leader with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and Mobimo Hldg.
Diversification Opportunities for Swiss Leader and Mobimo Hldg
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Swiss and Mobimo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Swiss Leader 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 Swiss Leader Price are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of Swiss Leader i.e., Swiss Leader and Mobimo Hldg go up and down completely randomly.
Pair Corralation between Swiss Leader and Mobimo Hldg
Assuming the 90 days trading horizon Swiss Leader Price is expected to generate 0.9 times more return on investment than Mobimo Hldg. However, Swiss Leader Price is 1.11 times less risky than Mobimo Hldg. It trades about 0.09 of its potential returns per unit of risk. Mobimo Hldg is currently generating about 0.07 per unit of risk. If you would invest 161,814 in Swiss Leader Price on August 25, 2024 and sell it today you would earn a total of 31,393 from holding Swiss Leader Price or generate 19.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Swiss Leader Price vs. Mobimo Hldg
Performance |
| Timeline |
Swiss Leader and Mobimo Hldg Volatility Contrast
Predicted Return Density |
| Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
Mobimo Hldg
Pair trading matchups for Mobimo Hldg
Pair Trading with Swiss Leader and Mobimo Hldg
The main advantage of trading using opposite Swiss Leader and Mobimo Hldg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader position performs unexpectedly, Mobimo Hldg 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 Mobimo Hldg will offset losses from the drop in Mobimo Hldg's long position.| Swiss Leader vs. Metall Zug AG | Swiss Leader vs. Basler Kantonalbank | Swiss Leader vs. Zurich Insurance Group | Swiss Leader vs. mobilezone ag |
| Mobimo Hldg vs. PSP Swiss Property | Mobimo Hldg vs. Allreal Holding | Mobimo Hldg vs. Swiss Prime Site | Mobimo Hldg vs. Helvetia Holding AG |
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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