Correlation Between FIH MOBILE and Lendlease
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE and Lendlease 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 Lendlease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and Lendlease Group, you can compare the effects of market volatilities on FIH MOBILE and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and Lendlease.
Diversification Opportunities for FIH MOBILE and Lendlease
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIH and Lendlease is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of FIH MOBILE i.e., FIH MOBILE and Lendlease go up and down completely randomly.
Pair Corralation between FIH MOBILE and Lendlease
Assuming the 90 days trading horizon FIH MOBILE is expected to generate 0.97 times more return on investment than Lendlease. However, FIH MOBILE is 1.03 times less risky than Lendlease. It trades about 0.16 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.24 per unit of risk. If you would invest 10.00 in FIH MOBILE on October 30, 2024 and sell it today you would earn a total of 1.00 from holding FIH MOBILE or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. Lendlease Group
Performance |
| Timeline |
| FIH MOBILE |
| Lendlease Group |
FIH MOBILE and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and Lendlease
The main advantage of trading using opposite FIH MOBILE and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| FIH MOBILE vs. NAKED WINES PLC | FIH MOBILE vs. Goodyear Tire Rubber | FIH MOBILE vs. Entravision Communications | FIH MOBILE vs. Kingdee International Software |
| Lendlease vs. Hyatt Hotels | Lendlease vs. MUTUIONLINE | Lendlease vs. Playa Hotels Resorts | Lendlease vs. InterContinental Hotels 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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