Correlation Between Livetech and Bemobi Mobile

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

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

Diversification Opportunities for Livetech and Bemobi Mobile

0.15

Correlation Coefficient

Livetech  Bemobi Mobile

Average diversification

The 3 months correlation between Livetech and Bemobi is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Livetech da Bahia 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 Livetech 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 Livetech da Bahia 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 Livetech i.e., Livetech and Bemobi Mobile go up and down completely randomly.

Pair Corralation between Livetech and Bemobi Mobile

Assuming the 90 days trading horizon Livetech da Bahia is expected to under-perform the Bemobi Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Livetech da Bahia is 1.06 times less risky than Bemobi Mobile. The stock trades about -0.16 of its potential returns per unit of risk. The Bemobi Mobile Tech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,382  in Bemobi Mobile Tech on December 4, 2024 and sell it today you would earn a total of  68.00  from holding Bemobi Mobile Tech or generate 4.92% return on investment over 90 days.

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

Livetech da Bahia  vs.  Bemobi Mobile Tech

Livetech da Bahia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Livetech da Bahia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bemobi Mobile Tech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bemobi Mobile Tech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bemobi Mobile may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Livetech and Bemobi Mobile

The main advantage of trading using opposite Livetech and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Livetech 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 Livetech da Bahia 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.