Correlation Between Triad Group and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Triad Group and Mobilezone Holding 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 Triad Group and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and mobilezone holding AG, you can compare the effects of market volatilities on Triad Group and Mobilezone Holding 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 Triad Group with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Mobilezone Holding.
Diversification Opportunities for Triad Group and Mobilezone Holding
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Triad and Mobilezone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Triad Group 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 Triad Group PLC are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Triad Group i.e., Triad Group and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Triad Group and Mobilezone Holding
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 1.82 times more return on investment than Mobilezone Holding. However, Triad Group is 1.82 times more volatile than mobilezone holding AG. It trades about 0.11 of its potential returns per unit of risk. mobilezone holding AG is currently generating about -0.01 per unit of risk. If you would invest 8,751 in Triad Group PLC on September 1, 2024 and sell it today you would earn a total of 20,249 from holding Triad Group PLC or generate 231.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Triad Group PLC vs. mobilezone holding AG
Performance |
| Timeline |
| Triad Group PLC |
| mobilezone holding |
Triad Group and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Mobilezone Holding
The main advantage of trading using opposite Triad Group and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.| Triad Group vs. Axfood AB | Triad Group vs. EVS Broadcast Equipment | Triad Group vs. Premier Foods PLC | Triad Group vs. Silvercorp Metals |
| Mobilezone Holding vs. Uniper SE | Mobilezone Holding vs. Mulberry Group PLC | Mobilezone Holding vs. London Security Plc | Mobilezone Holding vs. Triad Group PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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