Correlation Between POSaBIT Systems and Mobi724 Global

Can any of the company-specific risk be diversified away by investing in both POSaBIT Systems and Mobi724 Global 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 POSaBIT Systems and Mobi724 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between POSaBIT Systems Corp and Mobi724 Global Solutions, you can compare the effects of market volatilities on POSaBIT Systems and Mobi724 Global 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 POSaBIT Systems with a short position of Mobi724 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSaBIT Systems and Mobi724 Global.

Diversification Opportunities for POSaBIT Systems and Mobi724 Global

-0.23

Correlation Coefficient

POSaBIT Systems  Mobi724 Global

Very good diversification

The 3 months correlation between POSaBIT and Mobi724 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding POSaBIT Systems Corp and Mobi724 Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobi724 Global Solutions and POSaBIT Systems 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 POSaBIT Systems Corp are associated (or correlated) with Mobi724 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobi724 Global Solutions has no effect on the direction of POSaBIT Systems i.e., POSaBIT Systems and Mobi724 Global go up and down completely randomly.

Pair Corralation between POSaBIT Systems and Mobi724 Global

Assuming the 90 days horizon POSaBIT Systems Corp is expected to generate 0.34 times more return on investment than Mobi724 Global. However, POSaBIT Systems Corp is 2.96 times less risky than Mobi724 Global. It trades about 0.04 of its potential returns per unit of risk. Mobi724 Global Solutions is currently generating about 0.0 per unit of risk. If you would invest  6.82  in POSaBIT Systems Corp on December 3, 2024 and sell it today you would lose (0.02) from holding POSaBIT Systems Corp or give up 0.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

POSaBIT Systems Corp  vs.  Mobi724 Global Solutions

POSaBIT Systems Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in POSaBIT Systems Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, POSaBIT Systems reported solid returns over the last few months and may actually be approaching a breakup point.

Mobi724 Global Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobi724 Global Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Mobi724 Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with POSaBIT Systems and Mobi724 Global

The main advantage of trading using opposite POSaBIT Systems and Mobi724 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSaBIT Systems position performs unexpectedly, Mobi724 Global 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 Mobi724 Global will offset losses from the drop in Mobi724 Global's long position.

The idea behind POSaBIT Systems Corp and Mobi724 Global Solutions 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.