Correlation Between Microsoft and Mobimo Hldg

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

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

Diversification Opportunities for Microsoft and Mobimo Hldg

-0.14

Correlation Coefficient

Microsoft  Mobimo Hldg

Good diversification

The 3 months correlation between Microsoft and Mobimo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Microsoft 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 Microsoft are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of Microsoft i.e., Microsoft and Mobimo Hldg go up and down completely randomly.

Pair Corralation between Microsoft and Mobimo Hldg

Given the investment horizon of 90 days Microsoft is expected to under-perform the Mobimo Hldg. In addition to that, Microsoft is 1.83 times more volatile than Mobimo Hldg. It trades about -0.11 of its total potential returns per unit of risk. Mobimo Hldg is currently generating about 0.14 per unit of volatility. If you would invest  29,200  in Mobimo Hldg on December 24, 2024 and sell it today you would earn a total of  2,050  from holding Mobimo Hldg or generate 7.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Microsoft  vs.  Mobimo Hldg

Microsoft

Risk-Adjusted Performance

Very Weak

Over the last 90 days Microsoft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Mobimo Hldg

Risk-Adjusted Performance

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 abnormal basic indicators, Mobimo Hldg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Microsoft and Mobimo Hldg

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

The idea behind Microsoft and Mobimo Hldg 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.