Correlation Between FingerMotion and Crexendo
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Crexendo 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 Crexendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Crexendo, you can compare the effects of market volatilities on FingerMotion and Crexendo 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 Crexendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Crexendo.
Diversification Opportunities for FingerMotion and Crexendo
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FingerMotion and Crexendo is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Crexendo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crexendo 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 Crexendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crexendo has no effect on the direction of FingerMotion i.e., FingerMotion and Crexendo go up and down completely randomly.
Pair Corralation between FingerMotion and Crexendo
Given the investment horizon of 90 days FingerMotion is expected to under-perform the Crexendo. In addition to that, FingerMotion is 1.35 times more volatile than Crexendo. It trades about -0.1 of its total potential returns per unit of risk. Crexendo is currently generating about 0.19 per unit of volatility. If you would invest 558.00 in Crexendo on November 27, 2024 and sell it today you would earn a total of 76.00 from holding Crexendo or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. Crexendo
Performance |
| Timeline |
| FingerMotion |
| Crexendo |
FingerMotion and Crexendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Crexendo
The main advantage of trading using opposite FingerMotion and Crexendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Crexendo 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 Crexendo will offset losses from the drop in Crexendo's long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KORE Group Holdings |
| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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