Correlation Between Potomac Bancshares and Mobi724 Global

Can any of the company-specific risk be diversified away by investing in both Potomac Bancshares and Mobi724 Global 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 Potomac Bancshares and Mobi724 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Potomac Bancshares and Mobi724 Global Solutions, you can compare the effects of market volatilities on Potomac Bancshares and Mobi724 Global 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 Potomac Bancshares with a short position of Mobi724 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Potomac Bancshares and Mobi724 Global.

Diversification Opportunities for Potomac Bancshares and Mobi724 Global

0.0

Correlation Coefficient

Potomac Bancshares  Mobi724 Global

Pay attention - limited upside

The 3 months correlation between Potomac and Mobi724 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Potomac Bancshares and Mobi724 Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobi724 Global Solutions and Potomac Bancshares 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 Potomac Bancshares are associated (or correlated) with Mobi724 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobi724 Global Solutions has no effect on the direction of Potomac Bancshares i.e., Potomac Bancshares and Mobi724 Global go up and down completely randomly.

Pair Corralation between Potomac Bancshares and Mobi724 Global

If you would invest  1,583  in Potomac Bancshares on May 5, 2025 and sell it today you would earn a total of  215.00  from holding Potomac Bancshares or generate 13.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Potomac Bancshares  vs.  Mobi724 Global Solutions

Potomac Bancshares

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Potomac Bancshares are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental drivers, Potomac Bancshares unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mobi724 Global Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mobi724 Global Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Mobi724 Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Potomac Bancshares and Mobi724 Global

The main advantage of trading using opposite Potomac Bancshares and Mobi724 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Potomac Bancshares position performs unexpectedly, Mobi724 Global 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 Mobi724 Global will offset losses from the drop in Mobi724 Global's long position.

The idea behind Potomac Bancshares and Mobi724 Global Solutions 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 Global Correlations module to find global opportunities by holding instruments from different markets.