Correlation Between Mobilezone Holding and BURLINGTON STORES

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

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

Diversification Opportunities for Mobilezone Holding and BURLINGTON STORES

0.0

Correlation Coefficient

Mobilezone Holding  BURLINGTON STORES

Pay attention - limited upside

The 3 months correlation between Mobilezone and BURLINGTON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON STORES and Mobilezone Holding 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 Mobilezone Holding AG are associated (or correlated) with BURLINGTON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BURLINGTON STORES has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and BURLINGTON STORES go up and down completely randomly.

Pair Corralation between Mobilezone Holding and BURLINGTON STORES

If you would invest  27,200  in BURLINGTON STORES on September 25, 2024 and sell it today you would earn a total of  200.00  from holding BURLINGTON STORES or generate 0.74% return on investment over 90 days.

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

Mobilezone Holding AG  vs.  BURLINGTON STORES

Mobilezone Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobilezone Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BURLINGTON STORES

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BURLINGTON STORES are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, BURLINGTON STORES exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilezone Holding and BURLINGTON STORES

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

The idea behind Mobilezone Holding AG and BURLINGTON STORES 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.