Correlation Between Mobilezone and Glarner Kantonalbank

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

By analyzing existing cross correlation between mobilezone ag and Glarner Kantonalbank, you can compare the effects of market volatilities on Mobilezone and Glarner Kantonalbank 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 Mobilezone with a short position of Glarner Kantonalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone and Glarner Kantonalbank.

Diversification Opportunities for Mobilezone and Glarner Kantonalbank

0.02

Correlation Coefficient

Mobilezone  Glarner Kantonalbank

Significant diversification

The 3 months correlation between Mobilezone and Glarner is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone ag and Glarner Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glarner Kantonalbank and Mobilezone 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 mobilezone ag are associated (or correlated) with Glarner Kantonalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glarner Kantonalbank has no effect on the direction of Mobilezone i.e., Mobilezone and Glarner Kantonalbank go up and down completely randomly.

Pair Corralation between Mobilezone and Glarner Kantonalbank

Assuming the 90 days trading horizon mobilezone ag is expected to under-perform the Glarner Kantonalbank. In addition to that, Mobilezone is 3.18 times more volatile than Glarner Kantonalbank. It trades about -0.15 of its total potential returns per unit of risk. Glarner Kantonalbank is currently generating about 0.35 per unit of volatility. If you would invest  2,100  in Glarner Kantonalbank on October 15, 2024 and sell it today you would earn a total of  90.00  from holding Glarner Kantonalbank or generate 4.29% return on investment over 90 days.

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

mobilezone ag  vs.  Glarner Kantonalbank

mobilezone ag

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days mobilezone ag has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Glarner Kantonalbank

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glarner Kantonalbank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Glarner Kantonalbank is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mobilezone and Glarner Kantonalbank

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

The idea behind mobilezone ag and Glarner Kantonalbank 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.