Correlation Between FIH MOBILE and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE and Singapore Telecommunicatio 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 Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and Singapore Telecommunications Limited, you can compare the effects of market volatilities on FIH MOBILE and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and Singapore Telecommunicatio.
Diversification Opportunities for FIH MOBILE and Singapore Telecommunicatio
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIH and Singapore is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of FIH MOBILE i.e., FIH MOBILE and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between FIH MOBILE and Singapore Telecommunicatio
If you would invest 221.00 in Singapore Telecommunications Limited on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Singapore Telecommunications Limited or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. Singapore Telecommunications L
Performance |
| Timeline |
| FIH MOBILE |
| Singapore Telecommunicatio |
FIH MOBILE and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and Singapore Telecommunicatio
The main advantage of trading using opposite FIH MOBILE and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio'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 |
| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. China Mobile Limited | Singapore Telecommunicatio vs. Verizon Communications | Singapore Telecommunicatio vs. ATT Inc |
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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