Correlation Between OPmobility and Financiere Moncey

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

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

Diversification Opportunities for OPmobility and Financiere Moncey

0.74

Correlation Coefficient

OPmobility  Financiere Moncey

Poor diversification

The 3 months correlation between OPmobility and Financiere is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding OPmobility SE and Financiere Moncey SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Moncey and OPmobility 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 OPmobility SE are associated (or correlated) with Financiere Moncey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Moncey has no effect on the direction of OPmobility i.e., OPmobility and Financiere Moncey go up and down completely randomly.

Pair Corralation between OPmobility and Financiere Moncey

Assuming the 90 days trading horizon OPmobility SE is expected to generate 2.04 times more return on investment than Financiere Moncey. However, OPmobility is 2.04 times more volatile than Financiere Moncey SA. It trades about 0.39 of its potential returns per unit of risk. Financiere Moncey SA is currently generating about 0.3 per unit of risk. If you would invest  795.00  in OPmobility SE on September 22, 2024 and sell it today you would earn a total of  183.00  from holding OPmobility SE or generate 23.02% return on investment over 90 days.

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

OPmobility SE  vs.  Financiere Moncey SA

OPmobility SE

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OPmobility SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, OPmobility sustained solid returns over the last few months and may actually be approaching a breakup point.

Financiere Moncey

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Financiere Moncey SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Financiere Moncey may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with OPmobility and Financiere Moncey

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

The idea behind OPmobility SE and Financiere Moncey SA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.