Correlation Between FingerMotion and Sify Technologies
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Sify Technologies 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 Sify Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Sify Technologies Limited, you can compare the effects of market volatilities on FingerMotion and Sify Technologies 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 Sify Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Sify Technologies.
Diversification Opportunities for FingerMotion and Sify Technologies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FingerMotion and Sify is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Sify Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sify Technologies 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 Sify Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sify Technologies has no effect on the direction of FingerMotion i.e., FingerMotion and Sify Technologies go up and down completely randomly.
Pair Corralation between FingerMotion and Sify Technologies
Given the investment horizon of 90 days FingerMotion is expected to under-perform the Sify Technologies. But the stock apears to be less risky and, when comparing its historical volatility, FingerMotion is 2.41 times less risky than Sify Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Sify Technologies Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 618.00 in Sify Technologies Limited on August 30, 2024 and sell it today you would lose (273.00) from holding Sify Technologies Limited or give up 44.17% 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. Sify Technologies Limited
Performance |
| Timeline |
| FingerMotion |
| Sify Technologies |
FingerMotion and Sify Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Sify Technologies
The main advantage of trading using opposite FingerMotion and Sify Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Sify Technologies 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 Sify Technologies will offset losses from the drop in Sify Technologies' long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Consolidated Communications |
| Sify Technologies vs. KORE Group Holdings | Sify Technologies vs. Consolidated Communications | Sify Technologies vs. Cogent Communications Group | Sify Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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