Correlation Between Basellandschaftliche and Mobilezone

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

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

Diversification Opportunities for Basellandschaftliche and Mobilezone

0.62

Correlation Coefficient

Basellandschaftliche  Mobilezone

Poor diversification

The 3 months correlation between Basellandschaftliche and Mobilezone is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Basellandschaftliche Kantonalb and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone ag and Basellandschaftliche 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 Basellandschaftliche Kantonalbank are associated (or correlated) with Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of Basellandschaftliche i.e., Basellandschaftliche and Mobilezone go up and down completely randomly.

Pair Corralation between Basellandschaftliche and Mobilezone

Assuming the 90 days trading horizon Basellandschaftliche is expected to generate 11.46 times less return on investment than Mobilezone. But when comparing it to its historical volatility, Basellandschaftliche Kantonalbank is 2.06 times less risky than Mobilezone. It trades about 0.01 of its potential returns per unit of risk. mobilezone ag is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,074  in mobilezone ag on April 22, 2025 and sell it today you would earn a total of  66.00  from holding mobilezone ag or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Basellandschaftliche Kantonalb  vs.  mobilezone ag

Basellandschaftliche

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Basellandschaftliche Kantonalbank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Basellandschaftliche is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

mobilezone ag

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone ag are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Mobilezone may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Basellandschaftliche and Mobilezone

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

The idea behind Basellandschaftliche Kantonalbank and mobilezone 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.