Correlation Between Mobilezone Holding and Nokia
Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and Nokia 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 Nokia 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 Nokia, you can compare the effects of market volatilities on Mobilezone Holding and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and Nokia.
Diversification Opportunities for Mobilezone Holding and Nokia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mobilezone and Nokia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Nokia go up and down completely randomly.
Pair Corralation between Mobilezone Holding and Nokia
Assuming the 90 days trading horizon Mobilezone Holding is expected to generate 2.38 times less return on investment than Nokia. But when comparing it to its historical volatility, Mobilezone Holding AG is 4.38 times less risky than Nokia. It trades about 0.05 of its potential returns per unit of risk. Nokia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Nokia on September 4, 2024 and sell it today you would earn a total of 54.00 from holding Nokia or generate 15.79% 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. Nokia
Performance |
| Timeline |
| Mobilezone Holding |
| Nokia |
Mobilezone Holding and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone Holding and Nokia
The main advantage of trading using opposite Mobilezone Holding and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone Holding position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| Mobilezone Holding vs. SCIENCE IN SPORT | Mobilezone Holding vs. COLUMBIA SPORTSWEAR | Mobilezone Holding vs. Siamgas And Petrochemicals | Mobilezone Holding vs. Mitsubishi Gas Chemical |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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