Correlation Between Mobile Max and Payment Financial

Can any of the company-specific risk be diversified away by investing in both Mobile Max and Payment Financial 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 Mobile Max and Payment Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mobile Max M and Payment Financial Technologies, you can compare the effects of market volatilities on Mobile Max and Payment Financial 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 Mobile Max with a short position of Payment Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Max and Payment Financial.

Diversification Opportunities for Mobile Max and Payment Financial

-0.71

Correlation Coefficient

Mobile Max  Payment Financial

Pay attention - limited upside

The 3 months correlation between Mobile and Payment is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Max M and Payment Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payment Financial and Mobile Max 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 Mobile Max M are associated (or correlated) with Payment Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payment Financial has no effect on the direction of Mobile Max i.e., Mobile Max and Payment Financial go up and down completely randomly.

Pair Corralation between Mobile Max and Payment Financial

Assuming the 90 days trading horizon Mobile Max M is expected to generate 1.52 times more return on investment than Payment Financial. However, Mobile Max is 1.52 times more volatile than Payment Financial Technologies. It trades about 0.07 of its potential returns per unit of risk. Payment Financial Technologies is currently generating about -0.18 per unit of risk. If you would invest  3,050  in Mobile Max M on September 27, 2024 and sell it today you would earn a total of  130.00  from holding Mobile Max M or generate 4.26% return on investment over 90 days.

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

Mobile Max M  vs.  Payment Financial Technologies

Mobile Max M

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobile Max M has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Payment Financial

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Payment Financial Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Payment Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobile Max and Payment Financial

The main advantage of trading using opposite Mobile Max and Payment Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Max position performs unexpectedly, Payment Financial 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 Payment Financial will offset losses from the drop in Payment Financial's long position.

The idea behind Mobile Max M and Payment Financial Technologies 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 CEOs Directory module to screen CEOs from public companies around the world.