Correlation Between Mobilezone Holding and Kroger

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

Diversification Opportunities for Mobilezone Holding and Kroger

0.65

Correlation Coefficient

Mobilezone Holding  Kroger

Poor diversification

The 3 months correlation between Mobilezone and Kroger is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Kroger go up and down completely randomly.

Pair Corralation between Mobilezone Holding and Kroger

Assuming the 90 days trading horizon mobilezone holding AG is expected to generate 0.84 times more return on investment than Kroger. However, mobilezone holding AG is 1.19 times less risky than Kroger. It trades about 0.12 of its potential returns per unit of risk. Kroger Co is currently generating about 0.03 per unit of risk. If you would invest  1,250  in mobilezone holding AG on December 26, 2024 and sell it today you would earn a total of  46.00  from holding mobilezone holding AG or generate 3.68% return on investment over 90 days.

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

mobilezone holding AG  vs.  Kroger Co

mobilezone holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone holding AG are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mobilezone Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kroger

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kroger Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Kroger is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mobilezone Holding and Kroger

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

The idea behind mobilezone holding AG and Kroger Co 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.