Correlation Between Mobileye Global and Sino AG

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

Diversification Opportunities for Mobileye Global and Sino AG

-0.71

Correlation Coefficient

Mobileye Global  Sino AG

Pay attention - limited upside

The 3 months correlation between Mobileye and Sino is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mobileye Global Class and Sino AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino AG 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 Sino AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino AG has no effect on the direction of Mobileye Global i.e., Mobileye Global and Sino AG go up and down completely randomly.

Pair Corralation between Mobileye Global and Sino AG

Given the investment horizon of 90 days Mobileye Global Class is expected to under-perform the Sino AG. In addition to that, Mobileye Global is 1.63 times more volatile than Sino AG. It trades about -0.07 of its total potential returns per unit of risk. Sino AG is currently generating about 0.27 per unit of volatility. If you would invest  6,100  in Sino AG on December 22, 2024 and sell it today you would earn a total of  3,000  from holding Sino AG or generate 49.18% return on investment over 90 days.

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

Mobileye Global Class  vs.  Sino AG

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.

Sino AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sino AG are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sino AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobileye Global and Sino AG

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

The idea behind Mobileye Global Class and Sino 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.