Correlation Between Fonix Mobile and Extra Space
Can any of the company-specific risk be diversified away by investing in both Fonix Mobile and Extra Space 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 Fonix Mobile and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonix Mobile plc and Extra Space Storage, you can compare the effects of market volatilities on Fonix Mobile and Extra Space 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 Fonix Mobile with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonix Mobile and Extra Space.
Diversification Opportunities for Fonix Mobile and Extra Space
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fonix and Extra is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fonix Mobile plc and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage and Fonix Mobile 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 Fonix Mobile plc are associated (or correlated) with Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Fonix Mobile i.e., Fonix Mobile and Extra Space go up and down completely randomly.
Pair Corralation between Fonix Mobile and Extra Space
Assuming the 90 days trading horizon Fonix Mobile plc is expected to under-perform the Extra Space. In addition to that, Fonix Mobile is 1.49 times more volatile than Extra Space Storage. It trades about -0.06 of its total potential returns per unit of risk. Extra Space Storage is currently generating about 0.0 per unit of volatility. If you would invest 16,839 in Extra Space Storage on August 25, 2024 and sell it today you would lose (77.00) from holding Extra Space Storage or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fonix Mobile plc vs. Extra Space Storage
Performance |
| Timeline |
| Fonix Mobile plc |
| Extra Space Storage |
Fonix Mobile and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonix Mobile and Extra Space
The main advantage of trading using opposite Fonix Mobile and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonix Mobile position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space's long position.| Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Samsung Electronics Co | Fonix Mobile vs. Hyundai Motor | Fonix Mobile vs. Toyota Motor Corp |
| Extra Space vs. Fonix Mobile plc | Extra Space vs. Gamma Communications PLC | Extra Space vs. Zoom Video Communications | Extra Space vs. Zinc Media Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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