Correlation Between Mobile Global and Stantec

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

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

Diversification Opportunities for Mobile Global and Stantec

-0.76

Correlation Coefficient

Mobile Global  Stantec

Pay attention - limited upside

The 3 months correlation between Mobile and Stantec is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Global Esports and Stantec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stantec and Mobile 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 Mobile Global Esports are associated (or correlated) with Stantec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stantec has no effect on the direction of Mobile Global i.e., Mobile Global and Stantec go up and down completely randomly.

Pair Corralation between Mobile Global and Stantec

If you would invest  49.00  in Mobile Global Esports on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Mobile Global Esports or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Mobile Global Esports  vs.  Stantec

Mobile Global Esports

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobile Global Esports has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Mobile Global is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Stantec

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stantec are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Stantec is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mobile Global and Stantec

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

The idea behind Mobile Global Esports and Stantec 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 Stocks Directory module to find actively traded stocks across global markets.