Correlation Between Mobix Labs and BlackRock

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

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

Diversification Opportunities for Mobix Labs and BlackRock

-0.43

Correlation Coefficient

Mobix Labs  BlackRock

Very good diversification

The 3 months correlation between Mobix and BlackRock is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock 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 BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of Mobix Labs i.e., Mobix Labs and BlackRock go up and down completely randomly.

Pair Corralation between Mobix Labs and BlackRock

Assuming the 90 days horizon Mobix Labs is expected to generate 16.92 times more return on investment than BlackRock. However, Mobix Labs is 16.92 times more volatile than BlackRock. It trades about 0.11 of its potential returns per unit of risk. BlackRock is currently generating about -0.11 per unit of risk. If you would invest  12.00  in Mobix Labs on October 8, 2024 and sell it today you would earn a total of  1.00  from holding Mobix Labs or generate 8.33% return on investment over 90 days.

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

Mobix Labs  vs.  BlackRock

Mobix Labs

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mobix Labs are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Mobix Labs showed solid returns over the last few months and may actually be approaching a breakup point.

BlackRock

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, BlackRock may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Mobix Labs and BlackRock

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

The idea behind Mobix Labs and BlackRock 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.