Correlation Between AECOM TECHNOLOGY and FIH MOBILE

Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY 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 AECOM TECHNOLOGY and FIH MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AECOM TECHNOLOGY and FIH MOBILE, you can compare the effects of market volatilities on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY with a short position of FIH MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and FIH MOBILE.

Diversification Opportunities for AECOM TECHNOLOGY and FIH MOBILE

0.17

Correlation Coefficient

AECOM TECHNOLOGY  FIH MOBILE

Average diversification

The 3 months correlation between AECOM and FIH is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and FIH MOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIH MOBILE and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and FIH MOBILE go up and down completely randomly.

Pair Corralation between AECOM TECHNOLOGY and FIH MOBILE

If you would invest  11.00  in FIH MOBILE on October 26, 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AECOM TECHNOLOGY  vs.  FIH MOBILE

AECOM TECHNOLOGY

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AECOM TECHNOLOGY are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, AECOM TECHNOLOGY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

FIH MOBILE

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FIH MOBILE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, FIH MOBILE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with AECOM TECHNOLOGY and FIH MOBILE

The main advantage of trading using opposite AECOM TECHNOLOGY and FIH MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY 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.

The idea behind AECOM TECHNOLOGY and FIH MOBILE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.