Correlation Between Litigation Capital and Mobilezone Holding

Can any of the company-specific risk be diversified away by investing in both Litigation Capital and Mobilezone Holding 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 Litigation Capital and Mobilezone Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Litigation Capital Management and mobilezone holding AG, you can compare the effects of market volatilities on Litigation Capital and Mobilezone Holding 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 Litigation Capital with a short position of Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Litigation Capital and Mobilezone Holding.

Diversification Opportunities for Litigation Capital and Mobilezone Holding

-0.95

Correlation Coefficient

Litigation Capital  Mobilezone Holding

Pay attention - limited upside

The 3 months correlation between Litigation and Mobilezone is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Litigation Capital Management and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Litigation Capital 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 Litigation Capital Management are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Litigation Capital i.e., Litigation Capital and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Litigation Capital and Mobilezone Holding

Assuming the 90 days trading horizon Litigation Capital Management is expected to under-perform the Mobilezone Holding. In addition to that, Litigation Capital is 2.13 times more volatile than mobilezone holding AG. It trades about -0.22 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.27 per unit of volatility. If you would invest  1,052  in mobilezone holding AG on December 27, 2024 and sell it today you would earn a total of  260.00  from holding mobilezone holding AG or generate 24.71% return on investment over 90 days.

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

Litigation Capital Management  vs.  mobilezone holding AG

Litigation Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Litigation Capital Management 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

mobilezone holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone holding AG are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Mobilezone Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Litigation Capital and Mobilezone Holding

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

The idea behind Litigation Capital Management and mobilezone holding 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.