Correlation Between MEDIANA CoLtd and Mobile Appliance

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

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

Diversification Opportunities for MEDIANA CoLtd and Mobile Appliance

0.19

Correlation Coefficient

MEDIANA CoLtd  Mobile Appliance

Average diversification

The 3 months correlation between MEDIANA and Mobile is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance and MEDIANA CoLtd 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 MEDIANA CoLtd are associated (or correlated) with Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Mobile Appliance go up and down completely randomly.

Pair Corralation between MEDIANA CoLtd and Mobile Appliance

Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the Mobile Appliance. But the stock apears to be less risky and, when comparing its historical volatility, MEDIANA CoLtd is 1.06 times less risky than Mobile Appliance. The stock trades about -0.05 of its potential returns per unit of risk. The Mobile Appliance is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  200,500  in Mobile Appliance on October 26, 2024 and sell it today you would earn a total of  26,500  from holding Mobile Appliance or generate 13.22% return on investment over 90 days.

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

MEDIANA CoLtd  vs.  Mobile Appliance

MEDIANA CoLtd

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MEDIANA CoLtd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MEDIANA CoLtd may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Mobile Appliance

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mobile Appliance are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mobile Appliance may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with MEDIANA CoLtd and Mobile Appliance

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

The idea behind MEDIANA CoLtd and Mobile Appliance 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.