Correlation Between FIH MOBILE and US Physical
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE and US Physical 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 US Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and US Physical Therapy, you can compare the effects of market volatilities on FIH MOBILE and US Physical 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 US Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and US Physical.
Diversification Opportunities for FIH MOBILE and US Physical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIH and UPH is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and US Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physical Therapy 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 US Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physical Therapy has no effect on the direction of FIH MOBILE i.e., FIH MOBILE and US Physical go up and down completely randomly.
Pair Corralation between FIH MOBILE and US Physical
Assuming the 90 days trading horizon FIH MOBILE is expected to under-perform the US Physical. In addition to that, FIH MOBILE is 2.65 times more volatile than US Physical Therapy. It trades about -0.22 of its total potential returns per unit of risk. US Physical Therapy is currently generating about 0.02 per unit of volatility. If you would invest 8,550 in US Physical Therapy on November 7, 2024 and sell it today you would earn a total of 50.00 from holding US Physical Therapy or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. US Physical Therapy
Performance |
| Timeline |
| FIH MOBILE |
| US Physical Therapy |
FIH MOBILE and US Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and US Physical
The main advantage of trading using opposite FIH MOBILE and US Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE position performs unexpectedly, US Physical 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 US Physical will offset losses from the drop in US Physical's long position.| FIH MOBILE vs. Columbia Sportswear | FIH MOBILE vs. FRACTAL GAMING GROUP | FIH MOBILE vs. LG Display Co | FIH MOBILE vs. PLAYTIKA HOLDING DL 01 |
| US Physical vs. UNIQA INSURANCE GR | US Physical vs. New China Life | US Physical vs. AEGEAN AIRLINES | US Physical vs. JAPAN AIRLINES |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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