Correlation Between Strix Group and FIH Mobile
Can any of the company-specific risk be diversified away by investing in both Strix Group 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 Strix Group and FIH Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and FIH Mobile Limited, you can compare the effects of market volatilities on Strix Group 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 Strix Group with a short position of FIH Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and FIH Mobile.
Diversification Opportunities for Strix Group and FIH Mobile
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and FIH is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and FIH Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH Mobile Limited and Strix Group 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 Strix Group Plc 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 Limited has no effect on the direction of Strix Group i.e., Strix Group and FIH Mobile go up and down completely randomly.
Pair Corralation between Strix Group and FIH Mobile
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the FIH Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Strix Group Plc is 1.17 times less risky than FIH Mobile. The stock trades about -0.1 of its potential returns per unit of risk. The FIH Mobile Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9.60 in FIH Mobile Limited on August 30, 2024 and sell it today you would earn a total of 0.40 from holding FIH Mobile Limited or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Strix Group Plc vs. FIH Mobile Limited
Performance |
| Timeline |
| Strix Group Plc |
| FIH Mobile Limited |
Strix Group and FIH Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and FIH Mobile
The main advantage of trading using opposite Strix Group and FIH Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group 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.| Strix Group vs. Alaska Air Group | Strix Group vs. CPU SOFTWAREHOUSE | Strix Group vs. SEALED AIR | Strix Group vs. DELTA AIR LINES |
| FIH Mobile vs. WESTLAKE CHEMICAL | FIH Mobile vs. MARKET VECTR RETAIL | FIH Mobile vs. JIAHUA STORES | FIH Mobile vs. Westlake Chemical |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |