Correlation Between FingerMotion and Frontier Communications
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Frontier 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 Frontier Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Frontier Communications Parent, you can compare the effects of market volatilities on FingerMotion and Frontier 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 Frontier Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Frontier Communications.
Diversification Opportunities for FingerMotion and Frontier Communications
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FingerMotion and Frontier is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Frontier Communications Parent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier 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 Frontier Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Communications has no effect on the direction of FingerMotion i.e., FingerMotion and Frontier Communications go up and down completely randomly.
Pair Corralation between FingerMotion and Frontier Communications
Given the investment horizon of 90 days FingerMotion is expected to under-perform the Frontier Communications. In addition to that, FingerMotion is 5.64 times more volatile than Frontier Communications Parent. It trades about -0.04 of its total potential returns per unit of risk. Frontier Communications Parent is currently generating about -0.18 per unit of volatility. If you would invest 3,589 in Frontier Communications Parent on August 30, 2024 and sell it today you would lose (111.00) from holding Frontier Communications Parent or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. Frontier Communications Parent
Performance |
| Timeline |
| FingerMotion |
| Frontier Communications |
FingerMotion and Frontier Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Frontier Communications
The main advantage of trading using opposite FingerMotion and Frontier Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Frontier 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 Frontier Communications will offset losses from the drop in Frontier Communications' long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Consolidated Communications |
| Frontier Communications vs. T Mobile | Frontier Communications vs. Comcast Corp | Frontier Communications vs. Charter Communications | Frontier Communications vs. Vodafone Group PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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