Correlation Between Mobilezone Holding and Trip Group
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and Trip Group 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 Holding and Trip Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobilezone Holding AG and Trip Group Limited, you can compare the effects of market volatilities on Mobilezone Holding and Trip Group 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 Holding with a short position of Trip Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and Trip Group.
Diversification Opportunities for Mobilezone Holding and Trip Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobilezone and Trip is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and Trip Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group Limited and Mobilezone Holding 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 Holding AG are associated (or correlated) with Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group Limited has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Trip Group go up and down completely randomly.
Pair Corralation between Mobilezone Holding and Trip Group
Assuming the 90 days trading horizon Mobilezone Holding is expected to generate 3.75 times less return on investment than Trip Group. But when comparing it to its historical volatility, Mobilezone Holding AG is 3.72 times less risky than Trip Group. It trades about 0.06 of its potential returns per unit of risk. Trip Group Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,320 in Trip Group Limited on October 25, 2024 and sell it today you would earn a total of 3,180 from holding Trip Group Limited or generate 95.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobilezone Holding AG vs. Trip Group Limited
Performance |
| Timeline |
| Mobilezone Holding |
| Trip Group Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Mobilezone Holding and Trip Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and Trip Group
The main advantage of trading using opposite Mobilezone Holding and Trip Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, Trip Group 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 Trip Group will offset losses from the drop in Trip Group's long position.| Mobilezone Holding vs. RYANAIR HLDGS ADR | Mobilezone Holding vs. Townsquare Media | Mobilezone Holding vs. Universal Entertainment | Mobilezone Holding vs. Fuji Media Holdings |
| Trip Group vs. Kingdee International Software | Trip Group vs. Agilent Technologies | Trip Group vs. Playtech plc | Trip Group vs. VELA TECHNOLPLC LS 0001 |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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