Correlation Between FingerMotion and IDT
Can any of the company-specific risk be diversified away by investing in both FingerMotion and IDT 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 IDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and IDT Corporation, you can compare the effects of market volatilities on FingerMotion and IDT 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 IDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and IDT.
Diversification Opportunities for FingerMotion and IDT
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FingerMotion and IDT is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and IDT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDT Corporation 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 IDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDT Corporation has no effect on the direction of FingerMotion i.e., FingerMotion and IDT go up and down completely randomly.
Pair Corralation between FingerMotion and IDT
Given the investment horizon of 90 days FingerMotion is expected to under-perform the IDT. In addition to that, FingerMotion is 2.88 times more volatile than IDT Corporation. It trades about 0.0 of its total potential returns per unit of risk. IDT Corporation is currently generating about 0.07 per unit of volatility. If you would invest 3,477 in IDT Corporation on November 3, 2024 and sell it today you would earn a total of 1,241 from holding IDT Corporation or generate 35.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. IDT Corp.
Performance |
| Timeline |
| FingerMotion |
| IDT Corporation |
FingerMotion and IDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and IDT
The main advantage of trading using opposite FingerMotion and IDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, IDT 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 IDT will offset losses from the drop in IDT's long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KORE Group Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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