Correlation Between MPM Corpreos and Mobly SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MPM Corpreos and Mobly SA 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 Mobly SA 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 Mobly SA, you can compare the effects of market volatilities on MPM Corpreos and Mobly SA 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 Mobly SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPM Corpreos and Mobly SA.

Diversification Opportunities for MPM Corpreos and Mobly SA

MPMMoblyDiversified AwayMPMMoblyDiversified Away100%
0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between MPM and Mobly is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding MPM Corpreos SA and Mobly SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobly SA 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 Mobly SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobly SA has no effect on the direction of MPM Corpreos i.e., MPM Corpreos and Mobly SA go up and down completely randomly.

Pair Corralation between MPM Corpreos and Mobly SA

Assuming the 90 days trading horizon MPM Corpreos SA is expected to generate 0.58 times more return on investment than Mobly SA. However, MPM Corpreos SA is 1.73 times less risky than Mobly SA. It trades about -0.19 of its potential returns per unit of risk. Mobly SA is currently generating about -0.15 per unit of risk. If you would invest  93.00  in MPM Corpreos SA on November 18, 2024 and sell it today you would lose (21.00) from holding MPM Corpreos SA or give up 22.58% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

MPM Corpreos SA  vs.  Mobly SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15ESPA3 MBLY3
       Timeline  
MPM Corpreos SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.70.750.80.850.90.95
Mobly SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mobly SA 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 basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.41.51.61.71.81.922.12.2

MPM Corpreos and Mobly SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.78-2.83-1.88-0.93-0.01230.721.462.22.94 0.030.040.050.060.070.080.09
JavaScript chart by amCharts 3.21.15ESPA3 MBLY3
       Returns  

Pair Trading with MPM Corpreos and Mobly SA

The main advantage of trading using opposite MPM Corpreos and Mobly SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPM Corpreos position performs unexpectedly, Mobly SA 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 Mobly SA will offset losses from the drop in Mobly SA's long position.
The idea behind MPM Corpreos SA and Mobly SA 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.
Check out your portfolio center.
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.


 

Trending Assets

REV
Revitus Property Opp
90.00  0.00  0.00 
CAFCA
CAFCA LIMITED
1,800  0.00  0.00 
NULL
Nedbank Group Limited
0.00  0.00  0.00 
TANG
TANGANDA TEA PANY
153.00  0.60  0.39