Correlation Between Mobilicom Limited and Ondas Holdings

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

By analyzing existing cross correlation between Mobilicom Limited Warrants and Ondas Holdings, you can compare the effects of market volatilities on Mobilicom Limited and Ondas Holdings 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 Mobilicom Limited with a short position of Ondas Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilicom Limited and Ondas Holdings.

Diversification Opportunities for Mobilicom Limited and Ondas Holdings

0.53

Correlation Coefficient

Mobilicom Limited  Ondas Holdings

Very weak diversification

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

Pair Corralation between Mobilicom Limited and Ondas Holdings

Assuming the 90 days horizon Mobilicom Limited is expected to generate 1.16 times less return on investment than Ondas Holdings. In addition to that, Mobilicom Limited is 1.61 times more volatile than Ondas Holdings. It trades about 0.24 of its total potential returns per unit of risk. Ondas Holdings is currently generating about 0.45 per unit of volatility. If you would invest  87.00  in Ondas Holdings on October 11, 2024 and sell it today you would earn a total of  167.00  from holding Ondas Holdings or generate 191.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mobilicom Limited Warrants  vs.  Ondas Holdings

Mobilicom Limited

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mobilicom Limited Warrants are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, Mobilicom Limited showed solid returns over the last few months and may actually be approaching a breakup point.

Ondas Holdings

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ondas Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, Ondas Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilicom Limited and Ondas Holdings

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

The idea behind Mobilicom Limited Warrants and Ondas Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.