Correlation Between MPM Corpreos and Bemobi Mobile

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

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

Diversification Opportunities for MPM Corpreos and Bemobi Mobile

-0.31

Correlation Coefficient

MPM Corpreos  Bemobi Mobile

Very good diversification

The 3 months correlation between MPM and Bemobi is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MPM Corpreos SA and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech and MPM Corpreos 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 MPM Corpreos SA are associated (or correlated) with Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of MPM Corpreos i.e., MPM Corpreos and Bemobi Mobile go up and down completely randomly.

Pair Corralation between MPM Corpreos and Bemobi Mobile

Assuming the 90 days trading horizon MPM Corpreos is expected to generate 360.55 times less return on investment than Bemobi Mobile. In addition to that, MPM Corpreos is 1.03 times more volatile than Bemobi Mobile Tech. It trades about 0.0 of its total potential returns per unit of risk. Bemobi Mobile Tech is currently generating about 0.19 per unit of volatility. 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

MPM Corpreos SA  vs.  Bemobi Mobile Tech

MPM Corpreos SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days MPM Corpreos SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, MPM Corpreos is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with MPM Corpreos and Bemobi Mobile

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

The idea behind MPM Corpreos SA and Bemobi Mobile Tech 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 Global Correlations module to find global opportunities by holding instruments from different markets.