Correlation Between Mobix Labs and Edgewell Personal

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

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

Diversification Opportunities for Mobix Labs and Edgewell Personal

0.0

Correlation Coefficient

Mobix Labs  Edgewell Personal

Pay attention - limited upside

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

Pair Corralation between Mobix Labs and Edgewell Personal

Assuming the 90 days horizon Mobix Labs is expected to generate 9.41 times more return on investment than Edgewell Personal. However, Mobix Labs is 9.41 times more volatile than Edgewell Personal Care. It trades about 0.06 of its potential returns per unit of risk. Edgewell Personal Care is currently generating about -0.11 per unit of risk. If you would invest  12.00  in Mobix Labs on December 21, 2024 and sell it today you would lose (2.34) from holding Mobix Labs or give up 19.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	91.67%
Values	Daily Returns

Mobix Labs  vs.  Edgewell Personal Care

Mobix Labs

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mobix Labs are ranked lower than 5 (%) 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.

Edgewell Personal Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edgewell Personal Care has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Mobix Labs and Edgewell Personal

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

The idea behind Mobix Labs and Edgewell Personal Care 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.

Check out your portfolio center.

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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.