Correlation Between Mobilezone Holding and Stockland

Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and Stockland 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 Stockland 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 Stockland, you can compare the effects of market volatilities on Mobilezone Holding and Stockland 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 Stockland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and Stockland.

Diversification Opportunities for Mobilezone Holding and Stockland

0.0

Correlation Coefficient

Mobilezone Holding  Stockland

Pay attention - limited upside

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

Pair Corralation between Mobilezone Holding and Stockland

If you would invest  244.00  in Stockland on October 4, 2024 and sell it today you would earn a total of  36.00  from holding Stockland or generate 14.75% 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.  Stockland

Mobilezone Holding

Risk-Adjusted Performance

0 of 100

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.

Stockland

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stockland has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Mobilezone Holding and Stockland

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

The idea behind Mobilezone Holding AG and Stockland 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.