Correlation Between FIH MOBILE and Apple
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and Apple Inc, you can compare the effects of market volatilities on FIH MOBILE and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and Apple.
Diversification Opportunities for FIH MOBILE and Apple
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FIH and Apple is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of FIH MOBILE i.e., FIH MOBILE and Apple go up and down completely randomly.
Pair Corralation between FIH MOBILE and Apple
Assuming the 90 days trading horizon FIH MOBILE is expected to under-perform the Apple. In addition to that, FIH MOBILE is 2.33 times more volatile than Apple Inc. It trades about -0.21 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.07 per unit of volatility. If you would invest 23,580 in Apple Inc on November 4, 2024 and sell it today you would lose (820.00) from holding Apple Inc or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. Apple Inc
Performance |
| Timeline |
| FIH MOBILE |
| Apple Inc |
FIH MOBILE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and Apple
The main advantage of trading using opposite FIH MOBILE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| FIH MOBILE vs. Yuexiu Transport Infrastructure | FIH MOBILE vs. CHRYSALIS INVESTMENTS LTD | FIH MOBILE vs. Scottish Mortgage Investment | FIH MOBILE vs. WisdomTree Investments |
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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 Stocks Directory module to find actively traded stocks across global markets.
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