Correlation Between Mobilezone Holding and CARSALES

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

Diversification Opportunities for Mobilezone Holding and CARSALES

0.0

Correlation Coefficient

Mobilezone Holding  CARSALES

Pay attention - limited upside

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

Pair Corralation between Mobilezone Holding and CARSALES

If you would invest  2,182  in CARSALESCOM on September 4, 2024 and sell it today you would earn a total of  358.00  from holding CARSALESCOM or generate 16.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Mobilezone Holding AG  vs.  CARSALESCOM

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.

CARSALESCOM

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CARSALESCOM are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CARSALES exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilezone Holding and CARSALES

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

The idea behind Mobilezone Holding AG and CARSALESCOM 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.