Correlation Between MOBA Network and Litium AB

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

By analyzing existing cross correlation between MOBA Network publ and Litium AB, you can compare the effects of market volatilities on MOBA Network and Litium AB 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 MOBA Network with a short position of Litium AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBA Network and Litium AB.

Diversification Opportunities for MOBA Network and Litium AB

-0.67

Correlation Coefficient

MOBA Network  Litium AB

Excellent diversification

The 3 months correlation between MOBA and Litium is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MOBA Network publ and Litium AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litium AB and MOBA Network 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 MOBA Network publ are associated (or correlated) with Litium AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litium AB has no effect on the direction of MOBA Network i.e., MOBA Network and Litium AB go up and down completely randomly.

Pair Corralation between MOBA Network and Litium AB

Assuming the 90 days trading horizon MOBA Network publ is expected to under-perform the Litium AB. In addition to that, MOBA Network is 1.19 times more volatile than Litium AB. It trades about -0.04 of its total potential returns per unit of risk. Litium AB is currently generating about 0.23 per unit of volatility. If you would invest  850.00  in Litium AB on April 24, 2025 and sell it today you would earn a total of  485.00  from holding Litium AB or generate 57.06% return on investment over 90 days.

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

MOBA Network publ  vs.  Litium AB

MOBA Network publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOBA Network publ has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Litium AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Litium AB are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Litium AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MOBA Network and Litium AB

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

The idea behind MOBA Network publ and Litium AB 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..