Correlation Between Mobileye Global and KBC Ancora

Can any of the company-specific risk be diversified away by investing in both Mobileye Global and KBC Ancora 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 KBC Ancora 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 KBC Ancora SCA, you can compare the effects of market volatilities on Mobileye Global and KBC Ancora 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 KBC Ancora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobileye Global and KBC Ancora.

Diversification Opportunities for Mobileye Global and KBC Ancora

-0.53

Correlation Coefficient

Mobileye Global  KBC Ancora

Excellent diversification

The 3 months correlation between Mobileye and KBC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and KBC Ancora SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC Ancora SCA 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 KBC Ancora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC Ancora SCA has no effect on the direction of Mobileye Global i.e., Mobileye Global and KBC Ancora go up and down completely randomly.

Pair Corralation between Mobileye Global and KBC Ancora

Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the KBC Ancora. In addition to that, Mobileye Global is 3.3 times more volatile than KBC Ancora SCA. It trades about -0.06 of its total potential returns per unit of risk. KBC Ancora SCA is currently generating about 0.19 per unit of volatility. If you would invest  4,945  in KBC Ancora SCA on December 20, 2024 and sell it today you would earn a total of  735.00  from holding KBC Ancora SCA or generate 14.86% return on investment over 90 days.

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

Mobileye Global Class  vs.  KBC Ancora SCA

Mobileye Global Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobileye Global Class 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 essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

KBC Ancora SCA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC Ancora SCA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, KBC Ancora reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobileye Global and KBC Ancora

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

The idea behind Mobileye Global Class and KBC Ancora SCA 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.