Correlation Between Liontrust Asset and Mobilezone Holding

Can any of the company-specific risk be diversified away by investing in both Liontrust Asset 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 Liontrust Asset and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Liontrust Asset Management and mobilezone holding AG, you can compare the effects of market volatilities on Liontrust Asset 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 Liontrust Asset with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Mobilezone Holding.

Diversification Opportunities for Liontrust Asset and Mobilezone Holding

-0.83

Correlation Coefficient

Liontrust Asset  Mobilezone Holding

Pay attention - limited upside

The 3 months correlation between Liontrust and Mobilezone is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Liontrust Asset 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 Liontrust Asset Management 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 Liontrust Asset i.e., Liontrust Asset and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Liontrust Asset and Mobilezone Holding

Assuming the 90 days trading horizon Liontrust Asset Management is expected to under-perform the Mobilezone Holding. In addition to that, Liontrust Asset is 3.09 times more volatile than mobilezone holding AG. It trades about -0.18 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.1 per unit of volatility. If you would invest  1,328  in mobilezone holding AG on September 2, 2024 and sell it today you would earn a total of  64.00  from holding mobilezone holding AG or generate 4.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Liontrust Asset Management  vs.  mobilezone holding AG

Liontrust Asset Mana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Liontrust Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

mobilezone holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone holding AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Liontrust Asset and Mobilezone Holding

The main advantage of trading using opposite Liontrust Asset and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset 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.

The idea behind Liontrust Asset Management and mobilezone holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.