Correlation Between FingerMotion and Anterix

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

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

Diversification Opportunities for FingerMotion and Anterix

0.35

Correlation Coefficient

FingerMotion  Anterix

Weak diversification

The 3 months correlation between FingerMotion and Anterix is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and FingerMotion 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 FingerMotion are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of FingerMotion i.e., FingerMotion and Anterix go up and down completely randomly.

Pair Corralation between FingerMotion and Anterix

Given the investment horizon of 90 days FingerMotion is expected to generate 1.06 times more return on investment than Anterix. However, FingerMotion is 1.06 times more volatile than Anterix. It trades about 0.09 of its potential returns per unit of risk. Anterix is currently generating about 0.08 per unit of risk. If you would invest  118.00  in FingerMotion on December 30, 2024 and sell it today you would earn a total of  27.00  from holding FingerMotion or generate 22.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

FingerMotion  vs.  Anterix

FingerMotion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FingerMotion are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, FingerMotion reported solid returns over the last few months and may actually be approaching a breakup point.

Anterix

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anterix are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Anterix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FingerMotion and Anterix

The main advantage of trading using opposite FingerMotion and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.

The idea behind FingerMotion and Anterix 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.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.