Correlation Between CAMP4 THERAPEUTICS and Mobilicom Limited

Can any of the company-specific risk be diversified away by investing in both CAMP4 THERAPEUTICS and Mobilicom Limited 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 CAMP4 THERAPEUTICS and Mobilicom Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CAMP4 THERAPEUTICS PORATION and Mobilicom Limited Warrants, you can compare the effects of market volatilities on CAMP4 THERAPEUTICS and Mobilicom Limited 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 CAMP4 THERAPEUTICS with a short position of Mobilicom Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAMP4 THERAPEUTICS and Mobilicom Limited.

Diversification Opportunities for CAMP4 THERAPEUTICS and Mobilicom Limited

-0.04

Correlation Coefficient

CAMP4 THERAPEUTICS  Mobilicom Limited

Good diversification

The 3 months correlation between CAMP4 and Mobilicom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CAMP4 THERAPEUTICS PORATION and Mobilicom Limited Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobilicom Limited and CAMP4 THERAPEUTICS 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 CAMP4 THERAPEUTICS PORATION are associated (or correlated) with Mobilicom Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobilicom Limited has no effect on the direction of CAMP4 THERAPEUTICS i.e., CAMP4 THERAPEUTICS and Mobilicom Limited go up and down completely randomly.

Pair Corralation between CAMP4 THERAPEUTICS and Mobilicom Limited

Given the investment horizon of 90 days CAMP4 THERAPEUTICS PORATION is expected to generate 0.66 times more return on investment than Mobilicom Limited. However, CAMP4 THERAPEUTICS PORATION is 1.51 times less risky than Mobilicom Limited. It trades about 0.01 of its potential returns per unit of risk. Mobilicom Limited Warrants is currently generating about -0.02 per unit of risk. If you would invest  541.00  in CAMP4 THERAPEUTICS PORATION on December 29, 2024 and sell it today you would lose (112.00) from holding CAMP4 THERAPEUTICS PORATION or give up 20.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.49%
Values	Daily Returns

CAMP4 THERAPEUTICS PORATION  vs.  Mobilicom Limited Warrants

CAMP4 THERAPEUTICS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAMP4 THERAPEUTICS PORATION are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent primary indicators, CAMP4 THERAPEUTICS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Mobilicom Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobilicom Limited Warrants 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 fundamental drivers remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CAMP4 THERAPEUTICS and Mobilicom Limited

The main advantage of trading using opposite CAMP4 THERAPEUTICS and Mobilicom Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAMP4 THERAPEUTICS position performs unexpectedly, Mobilicom Limited 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 Mobilicom Limited will offset losses from the drop in Mobilicom Limited's long position.

The idea behind CAMP4 THERAPEUTICS PORATION and Mobilicom Limited Warrants 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.