Correlation Between Zueblin Immobilien and Mobimo Hldg

Can any of the company-specific risk be diversified away by investing in both Zueblin Immobilien and Mobimo Hldg 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 Zueblin Immobilien and Mobimo Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zueblin Immobilien Holding and Mobimo Hldg, you can compare the effects of market volatilities on Zueblin Immobilien and Mobimo Hldg 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 Zueblin Immobilien with a short position of Mobimo Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zueblin Immobilien and Mobimo Hldg.

Diversification Opportunities for Zueblin Immobilien and Mobimo Hldg

0.73

Correlation Coefficient

Zueblin Immobilien  Mobimo Hldg

Poor diversification

The 3 months correlation between Zueblin and Mobimo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zueblin Immobilien Holding and Mobimo Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobimo Hldg and Zueblin Immobilien 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 Zueblin Immobilien Holding are associated (or correlated) with Mobimo Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobimo Hldg has no effect on the direction of Zueblin Immobilien i.e., Zueblin Immobilien and Mobimo Hldg go up and down completely randomly.

Pair Corralation between Zueblin Immobilien and Mobimo Hldg

Assuming the 90 days trading horizon Zueblin Immobilien Holding is expected to generate 3.1 times more return on investment than Mobimo Hldg. However, Zueblin Immobilien is 3.1 times more volatile than Mobimo Hldg. It trades about 0.17 of its potential returns per unit of risk. Mobimo Hldg is currently generating about 0.33 per unit of risk. If you would invest  3,020  in Zueblin Immobilien Holding on September 15, 2024 and sell it today you would earn a total of  280.00  from holding Zueblin Immobilien Holding or generate 9.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Zueblin Immobilien Holding  vs.  Mobimo Hldg

Zueblin Immobilien

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zueblin Immobilien Holding are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Zueblin Immobilien showed solid returns over the last few months and may actually be approaching a breakup point.

Mobimo Hldg

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobimo Hldg are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Mobimo Hldg is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Zueblin Immobilien and Mobimo Hldg

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

The idea behind Zueblin Immobilien Holding and Mobimo Hldg 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.