Correlation Between Mitsubishi Materials and FIH MOBILE
Can any of the company-specific risk be diversified away by investing in both Mitsubishi Materials and FIH MOBILE 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 Mitsubishi Materials and FIH MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsubishi Materials and FIH MOBILE, you can compare the effects of market volatilities on Mitsubishi Materials and FIH MOBILE 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 Mitsubishi Materials with a short position of FIH MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsubishi Materials and FIH MOBILE.
Diversification Opportunities for Mitsubishi Materials and FIH MOBILE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mitsubishi and FIH is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mitsubishi Materials and FIH MOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH MOBILE and Mitsubishi Materials 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 Mitsubishi Materials are associated (or correlated) with FIH MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIH MOBILE has no effect on the direction of Mitsubishi Materials i.e., Mitsubishi Materials and FIH MOBILE go up and down completely randomly.
Pair Corralation between Mitsubishi Materials and FIH MOBILE
Assuming the 90 days trading horizon Mitsubishi Materials is expected to generate 0.21 times more return on investment than FIH MOBILE. However, Mitsubishi Materials is 4.74 times less risky than FIH MOBILE. It trades about 0.17 of its potential returns per unit of risk. FIH MOBILE is currently generating about -0.21 per unit of risk. If you would invest 1,450 in Mitsubishi Materials on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Mitsubishi Materials or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsubishi Materials vs. FIH MOBILE
Performance |
| Timeline |
| Mitsubishi Materials |
| FIH MOBILE |
Mitsubishi Materials and FIH MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsubishi Materials and FIH MOBILE
The main advantage of trading using opposite Mitsubishi Materials and FIH MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsubishi Materials position performs unexpectedly, FIH MOBILE 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 FIH MOBILE will offset losses from the drop in FIH MOBILE's long position.| Mitsubishi Materials vs. Taiwan Semiconductor Manufacturing | Mitsubishi Materials vs. Summit Materials | Mitsubishi Materials vs. ON SEMICONDUCTOR | Mitsubishi Materials vs. TOREX SEMICONDUCTOR LTD |
| FIH MOBILE vs. Tower Semiconductor | FIH MOBILE vs. CHINA TONTINE WINES | FIH MOBILE vs. SINGAPORE AIRLINES | FIH MOBILE vs. China Eastern 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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