Correlation Between Retail Estates and FIH MOBILE
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and FIH MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and FIH MOBILE, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of FIH MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and FIH MOBILE.
Diversification Opportunities for Retail Estates and FIH MOBILE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Retail and FIH is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV and FIH MOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH MOBILE and Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and FIH MOBILE go up and down completely randomly.
Pair Corralation between Retail Estates and FIH MOBILE
If you would invest 11.00 in FIH MOBILE on November 2, 2024 and sell it today you would earn a total of 0.00 from holding FIH MOBILE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. FIH MOBILE
Performance |
| Timeline |
| Retail Estates NV |
| FIH MOBILE |
Retail Estates and FIH MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and FIH MOBILE
The main advantage of trading using opposite Retail Estates and FIH MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Hyatt Hotels | Retail Estates vs. MHP Hotel AG | Retail Estates vs. MELIA HOTELS | Retail Estates vs. Mitsui Chemicals |
| FIH MOBILE vs. Gold Road Resources | FIH MOBILE vs. Transport International Holdings | FIH MOBILE vs. Cal Maine Foods | FIH MOBILE vs. TITANIUM TRANSPORTGROUP |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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