Correlation Between FIH MOBILE and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE and Pembina Pipeline 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 Pembina Pipeline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and Pembina Pipeline Corp, you can compare the effects of market volatilities on FIH MOBILE and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and Pembina Pipeline.
Diversification Opportunities for FIH MOBILE and Pembina Pipeline
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FIH and Pembina is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of FIH MOBILE i.e., FIH MOBILE and Pembina Pipeline go up and down completely randomly.
Pair Corralation between FIH MOBILE and Pembina Pipeline
Assuming the 90 days trading horizon FIH MOBILE is expected to generate 1.71 times more return on investment than Pembina Pipeline. However, FIH MOBILE is 1.71 times more volatile than Pembina Pipeline Corp. It trades about 0.11 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.09 per unit of risk. If you would invest 6.85 in FIH MOBILE on October 18, 2024 and sell it today you would earn a total of 4.15 from holding FIH MOBILE or generate 60.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. Pembina Pipeline Corp
Performance |
| Timeline |
| FIH MOBILE |
| Pembina Pipeline Corp |
FIH MOBILE and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and Pembina Pipeline
The main advantage of trading using opposite FIH MOBILE and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| FIH MOBILE vs. BANK OF CHINA | FIH MOBILE vs. Corporate Office Properties | FIH MOBILE vs. Synchrony Financial | FIH MOBILE vs. CVB Financial Corp |
| Pembina Pipeline vs. Tianjin Capital Environmental | Pembina Pipeline vs. FIH MOBILE | Pembina Pipeline vs. DONGJIANG ENVIRONMENTAL H | Pembina Pipeline vs. GEELY AUTOMOBILE |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |