Correlation Between FONIX MOBILE and Nike
Can any of the company-specific risk be diversified away by investing in both FONIX MOBILE and Nike 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 Nike 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 Nike Inc, you can compare the effects of market volatilities on FONIX MOBILE and Nike 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 Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of FONIX MOBILE and Nike.
Diversification Opportunities for FONIX MOBILE and Nike
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FONIX and Nike is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding FONIX MOBILE PLC and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc 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 Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of FONIX MOBILE i.e., FONIX MOBILE and Nike go up and down completely randomly.
Pair Corralation between FONIX MOBILE and Nike
Assuming the 90 days horizon FONIX MOBILE PLC is expected to generate 1.95 times more return on investment than Nike. However, FONIX MOBILE is 1.95 times more volatile than Nike Inc. It trades about 0.11 of its potential returns per unit of risk. Nike Inc is currently generating about -0.37 per unit of risk. If you would invest 254.00 in FONIX MOBILE PLC on October 10, 2024 and sell it today you would earn a total of 8.00 from holding FONIX MOBILE PLC or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FONIX MOBILE PLC vs. Nike Inc
Performance |
| Timeline |
| FONIX MOBILE PLC |
| Nike Inc |
FONIX MOBILE and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FONIX MOBILE and Nike
The main advantage of trading using opposite FONIX MOBILE and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FONIX MOBILE position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.| FONIX MOBILE vs. DFS Furniture PLC | FONIX MOBILE vs. JSC Halyk bank | FONIX MOBILE vs. Webster Financial | FONIX MOBILE vs. Discover Financial Services |
| Nike vs. Scientific Games | Nike vs. Kingdee International Software | Nike vs. BRAGG GAMING GRP | Nike vs. AAC TECHNOLOGHLDGADR |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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