Correlation Between Mobilezone Holding and Oakley Capital

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

Diversification Opportunities for Mobilezone Holding and Oakley Capital

-0.43

Correlation Coefficient

Mobilezone Holding  Oakley Capital

Very good diversification

The 3 months correlation between Mobilezone and Oakley is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone holding AG and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and Oakley Capital go up and down completely randomly.

Pair Corralation between Mobilezone Holding and Oakley Capital

Assuming the 90 days trading horizon mobilezone holding AG is expected to generate 1.14 times more return on investment than Oakley Capital. However, Mobilezone Holding is 1.14 times more volatile than Oakley Capital Investments. It trades about 0.03 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about 0.03 per unit of risk. If you would invest  1,329  in mobilezone holding AG on September 13, 2024 and sell it today you would earn a total of  109.00  from holding mobilezone holding AG or generate 8.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.21%
Values	Daily Returns

mobilezone holding AG  vs.  Oakley Capital Investments

mobilezone holding

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone holding AG are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mobilezone Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Oakley Capital Inves

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Oakley Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Oakley Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mobilezone Holding and Oakley Capital

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

The idea behind mobilezone holding AG and Oakley Capital Investments 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.