Correlation Between CM Hospitalar and Bemobi Mobile
Can any of the company-specific risk be diversified away by investing in both CM Hospitalar and Bemobi Mobile 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 CM Hospitalar and Bemobi Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CM Hospitalar SA and Bemobi Mobile Tech, you can compare the effects of market volatilities on CM Hospitalar and Bemobi Mobile 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 CM Hospitalar with a short position of Bemobi Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and Bemobi Mobile.
Diversification Opportunities for CM Hospitalar and Bemobi Mobile
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VVEO3 and Bemobi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech and CM Hospitalar 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 CM Hospitalar SA are associated (or correlated) with Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of CM Hospitalar i.e., CM Hospitalar and Bemobi Mobile go up and down completely randomly.
Pair Corralation between CM Hospitalar and Bemobi Mobile
Assuming the 90 days trading horizon CM Hospitalar SA is expected to under-perform the Bemobi Mobile. In addition to that, CM Hospitalar is 1.9 times more volatile than Bemobi Mobile Tech. It trades about -0.14 of its total potential returns per unit of risk. Bemobi Mobile Tech is currently generating about 0.19 per unit of volatility. If you would invest 1,358 in Bemobi Mobile Tech on December 30, 2024 and sell it today you would earn a total of 355.00 from holding Bemobi Mobile Tech or generate 26.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CM Hospitalar SA vs. Bemobi Mobile Tech
Performance |
Timeline |
CM Hospitalar SA |
Bemobi Mobile Tech |
CM Hospitalar and Bemobi Mobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CM Hospitalar and Bemobi Mobile
The main advantage of trading using opposite CM Hospitalar and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM Hospitalar position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.CM Hospitalar vs. Ross Stores | CM Hospitalar vs. Keysight Technologies, | CM Hospitalar vs. Seagate Technology Holdings | CM Hospitalar vs. Micron Technology |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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