Correlation Between Mobilezone Holding and ALIOR BANK

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

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

Diversification Opportunities for Mobilezone Holding and ALIOR BANK

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Correlation Coefficient

Mobilezone Holding  ALIOR BANK

Pay attention - limited upside

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

Pair Corralation between Mobilezone Holding and ALIOR BANK

Assuming the 90 days trading horizon Mobilezone Holding is expected to generate 7.17 times less return on investment than ALIOR BANK. But when comparing it to its historical volatility, Mobilezone Holding AG is 4.06 times less risky than ALIOR BANK. It trades about 0.05 of its potential returns per unit of risk. ALIOR BANK is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  994.00  in ALIOR BANK on September 28, 2024 and sell it today you would earn a total of  1,015  from holding ALIOR BANK or generate 102.11% return on investment over 90 days.

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

Mobilezone Holding AG  vs.  ALIOR BANK

Mobilezone Holding

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Mobilezone Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ALIOR BANK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALIOR BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Mobilezone Holding and ALIOR BANK

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

The idea behind Mobilezone Holding AG and ALIOR BANK 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.