Correlation Between Mobilezone Holding and Made Tech

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

Diversification Opportunities for Mobilezone Holding and Made Tech

-0.52

Correlation Coefficient

Mobilezone Holding  Made Tech

Excellent diversification

The 3 months correlation between Mobilezone and Made is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and Made Tech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Made Tech Group 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 Made Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Made Tech Group has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Made Tech go up and down completely randomly.

Pair Corralation between Mobilezone Holding and Made Tech

Assuming the 90 days trading horizon mobilezone holding AG is expected to under-perform the Made Tech. In addition to that, Mobilezone Holding is 1.48 times more volatile than Made Tech Group. It trades about -0.28 of its total potential returns per unit of risk. Made Tech Group is currently generating about 0.05 per unit of volatility. If you would invest  2,370  in Made Tech Group on October 10, 2024 and sell it today you would earn a total of  55.00  from holding Made Tech Group or generate 2.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

mobilezone holding AG  vs.  Made Tech Group

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Made Tech Group

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Made Tech Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Made Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilezone Holding and Made Tech

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

The idea behind mobilezone holding AG and Made Tech Group 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.

Check out your portfolio center.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..