Correlation Between Mobimo Hldg and Helvetia Holding

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

By analyzing existing cross correlation between Mobimo Hldg and Helvetia Holding AG, you can compare the effects of market volatilities on Mobimo Hldg and Helvetia Holding 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 Mobimo Hldg with a short position of Helvetia Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobimo Hldg and Helvetia Holding.

Diversification Opportunities for Mobimo Hldg and Helvetia Holding

0.57

Correlation Coefficient

Mobimo Hldg  Helvetia Holding

Very weak diversification

The 3 months correlation between Mobimo and Helvetia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mobimo Hldg and Helvetia Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helvetia Holding and Mobimo Hldg 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 Mobimo Hldg are associated (or correlated) with Helvetia Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helvetia Holding has no effect on the direction of Mobimo Hldg i.e., Mobimo Hldg and Helvetia Holding go up and down completely randomly.

Pair Corralation between Mobimo Hldg and Helvetia Holding

Assuming the 90 days trading horizon Mobimo Hldg is expected to generate 1.07 times less return on investment than Helvetia Holding. But when comparing it to its historical volatility, Mobimo Hldg is 1.45 times less risky than Helvetia Holding. It trades about 0.14 of its potential returns per unit of risk. Helvetia Holding AG is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  13,710  in Helvetia Holding AG on September 16, 2024 and sell it today you would earn a total of  930.00  from holding Helvetia Holding AG or generate 6.78% return on investment over 90 days.

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

Mobimo Hldg  vs.  Helvetia Holding AG

Mobimo Hldg

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobimo Hldg are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Mobimo Hldg is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Helvetia Holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Helvetia Holding AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Helvetia Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mobimo Hldg and Helvetia Holding

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

The idea behind Mobimo Hldg and Helvetia Holding 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 Global Correlations module to find global opportunities by holding instruments from different markets.