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

CM Hospitalar  Bemobi Mobile

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

CM Hospitalar SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days CM Hospitalar SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bemobi Mobile Tech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bemobi Mobile Tech are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bemobi Mobile unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind CM Hospitalar SA and Bemobi Mobile Tech 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.