Correlation Between Malibu Boats and Future Mobility

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

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

Diversification Opportunities for Malibu Boats and Future Mobility

0.0

Correlation Coefficient

Malibu Boats  Future Mobility

Pay attention - limited upside

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

Pair Corralation between Malibu Boats and Future Mobility

If you would invest  0.01  in Future Mobility Solutions on January 17, 2024 and sell it today you would earn a total of  0.00  from holding Future Mobility Solutions or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.19%
Values	Daily Returns

Malibu Boats  vs.  Future Mobility Solutions

Malibu Boats

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Malibu Boats has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Future Mobility Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Malibu Boats and Future Mobility

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

The idea behind Malibu Boats and Future Mobility 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.