Correlation Between Mobix Labs and Nasdaq

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

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

Diversification Opportunities for Mobix Labs and Nasdaq

0.23

Correlation Coefficient

Mobix Labs  Nasdaq

Modest diversification

The 3 months correlation between Mobix and Nasdaq is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc and Mobix Labs 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 Mobix Labs are associated (or correlated) with Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of Mobix Labs i.e., Mobix Labs and Nasdaq go up and down completely randomly.

Pair Corralation between Mobix Labs and Nasdaq

Given the investment horizon of 90 days Mobix Labs is expected to generate 17.0 times more return on investment than Nasdaq. However, Mobix Labs is 17.0 times more volatile than Nasdaq Inc. It trades about 0.14 of its potential returns per unit of risk. Nasdaq Inc is currently generating about -0.18 per unit of risk. If you would invest  107.00  in Mobix Labs on October 12, 2024 and sell it today you would earn a total of  28.00  from holding Mobix Labs or generate 26.17% return on investment over 90 days.

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

Mobix Labs  vs.  Nasdaq Inc

Mobix Labs

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobix Labs are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental drivers, Mobix Labs showed solid returns over the last few months and may actually be approaching a breakup point.

Nasdaq Inc

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nasdaq Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Nasdaq is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Mobix Labs and Nasdaq

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

The idea behind Mobix Labs and Nasdaq Inc 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.