Correlation Between OnMobile Global and N B

Can any of the company-specific risk be diversified away by investing in both OnMobile Global and N B 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 OnMobile Global and N B into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OnMobile Global Limited and N B I, you can compare the effects of market volatilities on OnMobile Global and N B 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 OnMobile Global with a short position of N B. Check out your portfolio center. Please also check ongoing floating volatility patterns of OnMobile Global and N B.

Diversification Opportunities for OnMobile Global and N B

-0.33

Correlation Coefficient

OnMobile Global  N B

Very good diversification

The 3 months correlation between OnMobile and NBIFIN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding OnMobile Global Limited and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I and OnMobile Global 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 OnMobile Global Limited are associated (or correlated) with N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of OnMobile Global i.e., OnMobile Global and N B go up and down completely randomly.

Pair Corralation between OnMobile Global and N B

Assuming the 90 days trading horizon OnMobile Global Limited is expected to under-perform the N B. In addition to that, OnMobile Global is 1.29 times more volatile than N B I. It trades about -0.02 of its total potential returns per unit of risk. N B I is currently generating about 0.21 per unit of volatility. If you would invest  238,060  in N B I on September 2, 2024 and sell it today you would earn a total of  90,840  from holding N B I or generate 38.16% return on investment over 90 days.

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

OnMobile Global Limited  vs.  N B I

OnMobile Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OnMobile Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, OnMobile Global is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

N B I

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in N B I are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical and fundamental indicators, N B sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OnMobile Global and N B

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

The idea behind OnMobile Global Limited and N B I 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 Global Correlations module to find global opportunities by holding instruments from different markets.