Correlation Between Fundamenta Real and Mobimo Hldg

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

By analyzing existing cross correlation between Fundamenta Real Estate and Mobimo Hldg, you can compare the effects of market volatilities on Fundamenta Real and Mobimo Hldg 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 Fundamenta Real with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamenta Real and Mobimo Hldg.

Diversification Opportunities for Fundamenta Real and Mobimo Hldg

0.09

Correlation Coefficient

Fundamenta Real  Mobimo Hldg

Significant diversification

The 3 months correlation between Fundamenta and Mobimo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fundamenta Real Estate and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Fundamenta Real 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 Fundamenta Real Estate are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of Fundamenta Real i.e., Fundamenta Real and Mobimo Hldg go up and down completely randomly.

Pair Corralation between Fundamenta Real and Mobimo Hldg

Assuming the 90 days trading horizon Fundamenta Real is expected to generate 1.13 times less return on investment than Mobimo Hldg. But when comparing it to its historical volatility, Fundamenta Real Estate is 1.09 times less risky than Mobimo Hldg. It trades about 0.13 of its potential returns per unit of risk. Mobimo Hldg is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  29,200  in Mobimo Hldg on December 24, 2024 and sell it today you would earn a total of  2,050  from holding Mobimo Hldg or generate 7.02% return on investment over 90 days.

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

Fundamenta Real Estate  vs.  Mobimo Hldg

Fundamenta Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fundamenta Real Estate are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Fundamenta Real may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Mobimo Hldg

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobimo Hldg are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mobimo Hldg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Fundamenta Real and Mobimo Hldg

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

The idea behind Fundamenta Real Estate and Mobimo Hldg 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.