Correlation Between Mobilezone Holding and TRAVEL +

Can any of the company-specific risk be diversified away by investing in both Mobilezone Holding and TRAVEL + 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 TRAVEL + 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 TRAVEL LEISURE DL 01, you can compare the effects of market volatilities on Mobilezone Holding and TRAVEL + 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 TRAVEL +. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone Holding and TRAVEL +.

Diversification Opportunities for Mobilezone Holding and TRAVEL +

0.0

Correlation Coefficient

Mobilezone Holding  TRAVEL +

Pay attention - limited upside

The 3 months correlation between Mobilezone and TRAVEL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mobilezone Holding AG and TRAVEL LEISURE DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL LEISURE DL 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 TRAVEL +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVEL LEISURE DL has no effect on the direction of Mobilezone Holding i.e., Mobilezone Holding and TRAVEL + go up and down completely randomly.

Pair Corralation between Mobilezone Holding and TRAVEL +

If you would invest  3,888  in TRAVEL LEISURE DL 01 on September 4, 2024 and sell it today you would earn a total of  1,362  from holding TRAVEL LEISURE DL 01 or generate 35.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Mobilezone Holding AG  vs.  TRAVEL LEISURE DL 01

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

TRAVEL LEISURE DL

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TRAVEL LEISURE DL 01 are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, TRAVEL + reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilezone Holding and TRAVEL +

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

The idea behind Mobilezone Holding AG and TRAVEL LEISURE DL 01 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.