Correlation Between Mobilezone and Forbo Holding

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

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

Diversification Opportunities for Mobilezone and Forbo Holding

0.58

Correlation Coefficient

Mobilezone  Forbo Holding

Very weak diversification

The 3 months correlation between Mobilezone and Forbo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone ag and Forbo Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forbo Holding AG and Mobilezone 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 mobilezone ag are associated (or correlated) with Forbo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forbo Holding AG has no effect on the direction of Mobilezone i.e., Mobilezone and Forbo Holding go up and down completely randomly.

Pair Corralation between Mobilezone and Forbo Holding

Assuming the 90 days trading horizon Mobilezone is expected to generate 3.26 times less return on investment than Forbo Holding. But when comparing it to its historical volatility, mobilezone ag is 1.45 times less risky than Forbo Holding. It trades about 0.07 of its potential returns per unit of risk. Forbo Holding AG is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  76,300  in Forbo Holding AG on April 23, 2025 and sell it today you would earn a total of  13,700  from holding Forbo Holding AG or generate 17.96% return on investment over 90 days.

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

mobilezone ag  vs.  Forbo Holding AG

mobilezone ag

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in mobilezone ag are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Mobilezone is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Forbo Holding AG

Risk-Adjusted Performance

Good

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

Pair Trading with Mobilezone and Forbo Holding

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

The idea behind mobilezone ag and Forbo Holding 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.