Correlation Between Mobileye Global and Amundi Label

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

By analyzing existing cross correlation between Mobileye Global Class and Amundi Label Equilibre, you can compare the effects of market volatilities on Mobileye Global and Amundi Label 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 Mobileye Global with a short position of Amundi Label. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and Amundi Label.

Diversification Opportunities for Mobileye Global and Amundi Label

-0.11

Correlation Coefficient

Mobileye Global  Amundi Label

Good diversification

The 3 months correlation between Mobileye and Amundi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Amundi Label Equilibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Label Equilibre and Mobileye Global 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 Mobileye Global Class are associated (or correlated) with Amundi Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Label Equilibre has no effect on the direction of Mobileye Global i.e., Mobileye Global and Amundi Label go up and down completely randomly.

Pair Corralation between Mobileye Global and Amundi Label

Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the Amundi Label. In addition to that, Mobileye Global is 9.93 times more volatile than Amundi Label Equilibre. It trades about -0.03 of its total potential returns per unit of risk. Amundi Label Equilibre is currently generating about 0.06 per unit of volatility. If you would invest  15,204  in Amundi Label Equilibre on October 23, 2024 and sell it today you would earn a total of  1,877  from holding Amundi Label Equilibre or generate 12.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.0%
Values	Daily Returns

Mobileye Global Class  vs.  Amundi Label Equilibre

Mobileye Global Class

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobileye Global Class are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Mobileye Global showed solid returns over the last few months and may actually be approaching a breakup point.

Amundi Label Equilibre

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Label Equilibre are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Amundi Label is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mobileye Global and Amundi Label

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

The idea behind Mobileye Global Class and Amundi Label Equilibre 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.