Correlation Between Zueblin Immobilien and Mobimo Hldg
Can any of the company-specific risk be diversified away by investing in both Zueblin Immobilien 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 Zueblin Immobilien and Mobimo Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zueblin Immobilien Holding and Mobimo Hldg, you can compare the effects of market volatilities on Zueblin Immobilien 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 Zueblin Immobilien with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zueblin Immobilien and Mobimo Hldg.
Diversification Opportunities for Zueblin Immobilien and Mobimo Hldg
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zueblin and Mobimo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zueblin Immobilien Holding and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Zueblin Immobilien 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 Zueblin Immobilien Holding 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 Zueblin Immobilien i.e., Zueblin Immobilien and Mobimo Hldg go up and down completely randomly.
Pair Corralation between Zueblin Immobilien and Mobimo Hldg
Assuming the 90 days trading horizon Zueblin Immobilien is expected to generate 1.25 times less return on investment than Mobimo Hldg. In addition to that, Zueblin Immobilien is 2.08 times more volatile than Mobimo Hldg. It trades about 0.15 of its total potential returns per unit of risk. Mobimo Hldg is currently generating about 0.38 per unit of volatility. If you would invest 26,750 in Mobimo Hldg on September 1, 2024 and sell it today you would earn a total of 1,900 from holding Mobimo Hldg or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zueblin Immobilien Holding vs. Mobimo Hldg
Performance |
| Timeline |
| Zueblin Immobilien |
| Mobimo Hldg |
Zueblin Immobilien and Mobimo Hldg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zueblin Immobilien and Mobimo Hldg
The main advantage of trading using opposite Zueblin Immobilien and Mobimo Hldg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zueblin Immobilien 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.| Zueblin Immobilien vs. PSP Swiss Property | Zueblin Immobilien vs. Swiss Prime Site | Zueblin Immobilien vs. Helvetia Holding AG | Zueblin Immobilien vs. Baloise Holding AG |
| Mobimo Hldg vs. PSP Swiss Property | Mobimo Hldg vs. Swiss Prime Site | Mobimo Hldg vs. Helvetia Holding AG | Mobimo Hldg vs. Baloise 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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