Correlation Between Mobilezone Holding and PT Bank

Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and PT Bank 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 PT Bank 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 PT Bank Central, you can compare the effects of market volatilities on Mobilezone Holding and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and PT Bank.

Diversification Opportunities for Mobilezone Holding and PT Bank

0.0

Correlation Coefficient

Mobilezone Holding  PT Bank

Pay attention - limited upside

The 3 months correlation between Mobilezone and BZG2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and PT Bank go up and down completely randomly.

Pair Corralation between Mobilezone Holding and PT Bank

If you would invest  889.00  in Mobilezone Holding AG on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Mobilezone Holding AG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Mobilezone Holding AG  vs.  PT Bank Central

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

PT Bank Central

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Bank Central has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, PT Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mobilezone Holding and PT Bank

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

The idea behind Mobilezone Holding AG and PT Bank Central 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.