Correlation Between FingerMotion and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Consolidated 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 FingerMotion and Consolidated Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Consolidated Communications, you can compare the effects of market volatilities on FingerMotion and Consolidated 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 FingerMotion with a short position of Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Consolidated Communications.
Diversification Opportunities for FingerMotion and Consolidated Communications
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FingerMotion and Consolidated is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Consolidated Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications and FingerMotion 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 FingerMotion are associated (or correlated) with Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of FingerMotion i.e., FingerMotion and Consolidated Communications go up and down completely randomly.
Pair Corralation between FingerMotion and Consolidated Communications
Given the investment horizon of 90 days FingerMotion is expected to under-perform the Consolidated Communications. In addition to that, FingerMotion is 12.53 times more volatile than Consolidated Communications. It trades about -0.04 of its total potential returns per unit of risk. Consolidated Communications is currently generating about 0.12 per unit of volatility. If you would invest 463.00 in Consolidated Communications on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Consolidated Communications or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. Consolidated Communications
Performance |
| Timeline |
| FingerMotion |
| Consolidated Communications |
FingerMotion and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Consolidated Communications
The main advantage of trading using opposite FingerMotion and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Consolidated 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Ribbon Communications | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Shenandoah Telecommunications Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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