Correlation Between Mobilicom Limited and SatixFy Communications

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

By analyzing existing cross correlation between Mobilicom Limited American and SatixFy Communications, you can compare the effects of market volatilities on Mobilicom Limited and SatixFy Communications 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 Mobilicom Limited with a short position of SatixFy Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilicom Limited and SatixFy Communications.

Diversification Opportunities for Mobilicom Limited and SatixFy Communications

-0.12

Correlation Coefficient

Mobilicom Limited  SatixFy Communications

Good diversification

The 3 months correlation between Mobilicom and SatixFy is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mobilicom Limited American and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications and Mobilicom Limited 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 Mobilicom Limited American are associated (or correlated) with SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of Mobilicom Limited i.e., Mobilicom Limited and SatixFy Communications go up and down completely randomly.

Pair Corralation between Mobilicom Limited and SatixFy Communications

Considering the 90-day investment horizon Mobilicom Limited American is expected to under-perform the SatixFy Communications. In addition to that, Mobilicom Limited is 1.1 times more volatile than SatixFy Communications. It trades about -0.09 of its total potential returns per unit of risk. SatixFy Communications is currently generating about 0.05 per unit of volatility. If you would invest  57.00  in SatixFy Communications on February 19, 2024 and sell it today you would earn a total of  5.00  from holding SatixFy Communications or generate 8.77% return on investment over 90 days.

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

Mobilicom Limited American  vs.  SatixFy Communications

Mobilicom Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobilicom Limited American has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

SatixFy Communications

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SatixFy Communications are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SatixFy Communications showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobilicom Limited and SatixFy Communications

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

The idea behind Mobilicom Limited American and SatixFy Communications 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.