Correlation Between Impulse Fitness and OPmobility

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

By analyzing existing cross correlation between Impulse Fitness Solutions and OPmobility SE, you can compare the effects of market volatilities on Impulse Fitness and OPmobility 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 Impulse Fitness with a short position of OPmobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Fitness and OPmobility.

Diversification Opportunities for Impulse Fitness and OPmobility

0.0

Correlation Coefficient

Impulse Fitness  OPmobility

Pay attention - limited upside

The 3 months correlation between Impulse and OPmobility is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Fitness Solutions and OPmobility SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPmobility SE and Impulse Fitness 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 Impulse Fitness Solutions are associated (or correlated) with OPmobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPmobility SE has no effect on the direction of Impulse Fitness i.e., Impulse Fitness and OPmobility go up and down completely randomly.

Pair Corralation between Impulse Fitness and OPmobility

If you would invest  1,000.00  in OPmobility SE on December 25, 2024 and sell it today you would earn a total of  6.00  from holding OPmobility SE or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Impulse Fitness Solutions  vs.  OPmobility SE

Impulse Fitness Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impulse Fitness Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Impulse Fitness is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

OPmobility SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OPmobility SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, OPmobility is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Impulse Fitness and OPmobility

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

The idea behind Impulse Fitness Solutions and OPmobility SE 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.