Correlation Between INTER CARS and Mobilezone Holding

Can any of the company-specific risk be diversified away by investing in both INTER CARS and Mobilezone Holding 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 INTER CARS and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTER CARS SA and Mobilezone Holding AG, you can compare the effects of market volatilities on INTER CARS and Mobilezone Holding 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 INTER CARS with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Mobilezone Holding.

Diversification Opportunities for INTER CARS and Mobilezone Holding

0.0

Correlation Coefficient

INTER CARS  Mobilezone Holding

Pay attention - limited upside

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

Pair Corralation between INTER CARS and Mobilezone Holding

If you would invest  11,880  in INTER CARS SA on December 31, 2024 and sell it today you would earn a total of  540.00  from holding INTER CARS SA or generate 4.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

INTER CARS SA  vs.  Mobilezone Holding AG

INTER CARS SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INTER CARS SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, INTER CARS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mobilezone Holding

Risk-Adjusted Performance

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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with INTER CARS and Mobilezone Holding

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

The idea behind INTER CARS SA and Mobilezone Holding AG 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.