Correlation Between Magyar Telekom and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Magyar Telekom and FingerMotion 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 Magyar Telekom and FingerMotion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Telekom Plc and FingerMotion, you can compare the effects of market volatilities on Magyar Telekom and FingerMotion 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 Magyar Telekom with a short position of FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Telekom and FingerMotion.
Diversification Opportunities for Magyar Telekom and FingerMotion
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magyar and FingerMotion is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Telekom Plc and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion and Magyar Telekom 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 Magyar Telekom Plc are associated (or correlated) with FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Magyar Telekom i.e., Magyar Telekom and FingerMotion go up and down completely randomly.
Pair Corralation between Magyar Telekom and FingerMotion
Assuming the 90 days horizon Magyar Telekom is expected to generate 1.94 times less return on investment than FingerMotion. But when comparing it to its historical volatility, Magyar Telekom Plc is 2.05 times less risky than FingerMotion. It trades about 0.12 of its potential returns per unit of risk. FingerMotion is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 188.00 in FingerMotion on September 1, 2024 and sell it today you would earn a total of 16.00 from holding FingerMotion or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magyar Telekom Plc vs. FingerMotion
Performance |
| Timeline |
| Magyar Telekom Plc |
| FingerMotion |
Magyar Telekom and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Telekom and FingerMotion
The main advantage of trading using opposite Magyar Telekom and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Telekom position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.| Magyar Telekom vs. HUMANA INC | Magyar Telekom vs. Aquagold International | Magyar Telekom vs. Barloworld Ltd ADR | Magyar Telekom vs. Thrivent High Yield |
| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Consolidated Communications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |