Correlation Between Extra Space and Fonix Mobile
Can any of the company-specific risk be diversified away by investing in both Extra Space and Fonix Mobile 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 Extra Space and Fonix Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extra Space Storage and Fonix Mobile plc, you can compare the effects of market volatilities on Extra Space and Fonix Mobile 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 Extra Space with a short position of Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extra Space and Fonix Mobile.
Diversification Opportunities for Extra Space and Fonix Mobile
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Extra and Fonix is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and Fonix Mobile plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonix Mobile plc and Extra Space 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 Extra Space Storage are associated (or correlated) with Fonix Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonix Mobile plc has no effect on the direction of Extra Space i.e., Extra Space and Fonix Mobile go up and down completely randomly.
Pair Corralation between Extra Space and Fonix Mobile
Assuming the 90 days trading horizon Extra Space Storage is expected to generate 0.74 times more return on investment than Fonix Mobile. However, Extra Space Storage is 1.36 times less risky than Fonix Mobile. It trades about 0.06 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about -0.12 per unit of risk. If you would invest 16,672 in Extra Space Storage on August 29, 2024 and sell it today you would earn a total of 365.00 from holding Extra Space Storage or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Extra Space Storage vs. Fonix Mobile plc
Performance |
| Timeline |
| Extra Space Storage |
| Fonix Mobile plc |
Extra Space and Fonix Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extra Space and Fonix Mobile
The main advantage of trading using opposite Extra Space and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extra Space position performs unexpectedly, Fonix Mobile 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 Fonix Mobile will offset losses from the drop in Fonix Mobile's long position.| Extra Space vs. Lendinvest PLC | Extra Space vs. Neometals | Extra Space vs. Coor Service Management | Extra Space vs. Albion Technology General |
| Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Toyota Motor Corp | Fonix Mobile vs. Reliance Industries Ltd |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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