Correlation Between Fill Up and OPmobility

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

By analyzing existing cross correlation between Fill Up Media and OPmobility SE, you can compare the effects of market volatilities on Fill Up and OPmobility 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 Fill Up with a short position of OPmobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fill Up and OPmobility.

Diversification Opportunities for Fill Up and OPmobility

-0.37

Correlation Coefficient

Fill Up  OPmobility

Very good diversification

The 3 months correlation between Fill and OPmobility is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fill Up Media and OPmobility SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPmobility SE and Fill Up 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 Fill Up Media are associated (or correlated) with OPmobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPmobility SE has no effect on the direction of Fill Up i.e., Fill Up and OPmobility go up and down completely randomly.

Pair Corralation between Fill Up and OPmobility

Assuming the 90 days trading horizon Fill Up Media is expected to under-perform the OPmobility. But the stock apears to be less risky and, when comparing its historical volatility, Fill Up Media is 2.82 times less risky than OPmobility. The stock trades about -0.07 of its potential returns per unit of risk. The OPmobility SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  979.00  in OPmobility SE on December 24, 2024 and sell it today you would earn a total of  19.00  from holding OPmobility SE or generate 1.94% return on investment over 90 days.

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

Fill Up Media  vs.  OPmobility SE

Fill Up Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fill Up Media has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Fill Up is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

OPmobility SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OPmobility SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, OPmobility is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fill Up and OPmobility

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

The idea behind Fill Up Media and OPmobility SE 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.