Correlation Between FIH Mobile and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both FIH Mobile and ADRIATIC METALS 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 FIH Mobile and ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH Mobile Limited and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on FIH Mobile and ADRIATIC METALS 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 FIH Mobile with a short position of ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH Mobile and ADRIATIC METALS.
Diversification Opportunities for FIH Mobile and ADRIATIC METALS
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIH and ADRIATIC is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FIH Mobile Limited and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS and FIH 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 FIH Mobile Limited are associated (or correlated) with ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of FIH Mobile i.e., FIH Mobile and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between FIH Mobile and ADRIATIC METALS
Assuming the 90 days horizon FIH Mobile Limited is expected to generate 1.63 times more return on investment than ADRIATIC METALS. However, FIH Mobile is 1.63 times more volatile than ADRIATIC METALS LS 013355. It trades about 0.04 of its potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.03 per unit of risk. If you would invest 8.10 in FIH Mobile Limited on September 12, 2024 and sell it today you would earn a total of 1.90 from holding FIH Mobile Limited or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
FIH Mobile Limited vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| FIH Mobile Limited |
| ADRIATIC METALS LS |
FIH Mobile and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH Mobile and ADRIATIC METALS
The main advantage of trading using opposite FIH Mobile and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH Mobile position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| FIH Mobile vs. GOODYEAR T RUBBER | FIH Mobile vs. Sumitomo Rubber Industries | FIH Mobile vs. Elmos Semiconductor SE | FIH Mobile vs. Magnachip Semiconductor |
| ADRIATIC METALS vs. American Lithium Corp | ADRIATIC METALS vs. Superior Plus Corp | ADRIATIC METALS vs. SIVERS SEMICONDUCTORS AB | ADRIATIC METALS vs. Reliance Steel Aluminum |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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