Correlation Between Mobileye Global and Minehub Technologies

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

Diversification Opportunities for Mobileye Global and Minehub Technologies

0.15

Correlation Coefficient

Mobileye Global  Minehub Technologies

Average diversification

The 3 months correlation between Mobileye and Minehub is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Minehub Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minehub Technologies 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 Minehub Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minehub Technologies has no effect on the direction of Mobileye Global i.e., Mobileye Global and Minehub Technologies go up and down completely randomly.

Pair Corralation between Mobileye Global and Minehub Technologies

Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the Minehub Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Mobileye Global Class is 1.89 times less risky than Minehub Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Minehub Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  76.00  in Minehub Technologies on October 23, 2024 and sell it today you would lose (20.00) from holding Minehub Technologies or give up 26.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Mobileye Global Class  vs.  Minehub Technologies

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.

Minehub Technologies

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minehub Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Minehub Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobileye Global and Minehub Technologies

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

The idea behind Mobileye Global Class and Minehub Technologies 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.