Correlation Between Bemobi Mobile and UBS Group

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

By analyzing existing cross correlation between Bemobi Mobile Tech and UBS Group AG, you can compare the effects of market volatilities on Bemobi Mobile and UBS Group 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 Bemobi Mobile with a short position of UBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and UBS Group.

Diversification Opportunities for Bemobi Mobile and UBS Group

-0.48

Correlation Coefficient

Bemobi Mobile  UBS Group

Very good diversification

The 3 months correlation between Bemobi and UBS is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and UBS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group AG and Bemobi Mobile 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 Bemobi Mobile Tech are associated (or correlated) with UBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group AG has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and UBS Group go up and down completely randomly.

Pair Corralation between Bemobi Mobile and UBS Group

Assuming the 90 days trading horizon Bemobi Mobile Tech is expected to generate 1.02 times more return on investment than UBS Group. However, Bemobi Mobile is 1.02 times more volatile than UBS Group AG. It trades about 0.19 of its potential returns per unit of risk. UBS Group AG is currently generating about -0.02 per unit of risk. If you would invest  1,358  in Bemobi Mobile Tech on December 30, 2024 and sell it today you would earn a total of  355.00  from holding Bemobi Mobile Tech or generate 26.14% return on investment over 90 days.

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

Bemobi Mobile Tech  vs.  UBS Group AG

Bemobi Mobile Tech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bemobi Mobile Tech are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bemobi Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

UBS Group AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days UBS Group AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, UBS Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bemobi Mobile and UBS Group

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

The idea behind Bemobi Mobile Tech and UBS Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.