Correlation Between Triad Group and Mobilezone Holding

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

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

Diversification Opportunities for Triad Group and Mobilezone Holding

0.68

Correlation Coefficient

Triad Group  Mobilezone Holding

Poor diversification

The 3 months correlation between Triad and Mobilezone is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding and Triad Group 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 Triad Group PLC are associated (or correlated) with Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Triad Group i.e., Triad Group and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Triad Group and Mobilezone Holding

Assuming the 90 days trading horizon Triad Group PLC is expected to generate 1.46 times more return on investment than Mobilezone Holding. However, Triad Group is 1.46 times more volatile than mobilezone holding AG. It trades about 0.04 of its potential returns per unit of risk. mobilezone holding AG is currently generating about -0.07 per unit of risk. If you would invest  24,989  in Triad Group PLC on October 14, 2024 and sell it today you would earn a total of  4,011  from holding Triad Group PLC or generate 16.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.43%
Values	Daily Returns

Triad Group PLC  vs.  mobilezone holding AG

Triad Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triad Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Triad Group is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Triad Group and Mobilezone Holding

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

The idea behind Triad Group PLC and mobilezone holding AG 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.