Correlation Between Easy Software and FIH MOBILE
Can any of the company-specific risk be diversified away by investing in both Easy Software and FIH 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 Easy Software and FIH MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and FIH MOBILE, you can compare the effects of market volatilities on Easy Software and FIH 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 Easy Software with a short position of FIH MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and FIH MOBILE.
Diversification Opportunities for Easy Software and FIH MOBILE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easy and FIH is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and FIH MOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH MOBILE and Easy Software 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 Easy Software AG are associated (or correlated) with FIH MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIH MOBILE has no effect on the direction of Easy Software i.e., Easy Software and FIH MOBILE go up and down completely randomly.
Pair Corralation between Easy Software and FIH MOBILE
Assuming the 90 days trading horizon Easy Software is expected to generate 1.05 times less return on investment than FIH MOBILE. In addition to that, Easy Software is 1.05 times more volatile than FIH MOBILE. It trades about 0.05 of its total potential returns per unit of risk. FIH MOBILE is currently generating about 0.05 per unit of volatility. If you would invest 6.85 in FIH MOBILE on November 7, 2024 and sell it today you would earn a total of 1.85 from holding FIH MOBILE or generate 27.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. FIH MOBILE
Performance |
| Timeline |
| Easy Software AG |
| FIH MOBILE |
Easy Software and FIH MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and FIH MOBILE
The main advantage of trading using opposite Easy Software and FIH MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, FIH 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 FIH MOBILE will offset losses from the drop in FIH MOBILE's long position.| Easy Software vs. Suntory Beverage Food | Easy Software vs. Austevoll Seafood ASA | Easy Software vs. ANGANG STEEL H | Easy Software vs. Axfood AB |
| FIH MOBILE vs. Columbia Sportswear | FIH MOBILE vs. FRACTAL GAMING GROUP | FIH MOBILE vs. LG Display Co | FIH MOBILE vs. PLAYTIKA HOLDING DL 01 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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