Correlation Between FingerMotion and Liberty Global
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Liberty Global 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 Liberty Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Liberty Global PLC, you can compare the effects of market volatilities on FingerMotion and Liberty Global 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 Liberty Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Liberty Global.
Diversification Opportunities for FingerMotion and Liberty Global
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FingerMotion and Liberty is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Liberty Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Global PLC 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 Liberty Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Global PLC has no effect on the direction of FingerMotion i.e., FingerMotion and Liberty Global go up and down completely randomly.
Pair Corralation between FingerMotion and Liberty Global
Given the investment horizon of 90 days FingerMotion is expected to generate 3.26 times more return on investment than Liberty Global. However, FingerMotion is 3.26 times more volatile than Liberty Global PLC. It trades about 0.09 of its potential returns per unit of risk. Liberty Global PLC is currently generating about -0.09 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 Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
FingerMotion vs. Liberty Global PLC
Performance |
Timeline |
FingerMotion |
Liberty Global PLC |
FingerMotion and Liberty Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FingerMotion and Liberty Global
The main advantage of trading using opposite FingerMotion and Liberty Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Liberty Global 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 Liberty Global will offset losses from the drop in Liberty Global's long position.FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KORE Group Holdings |
Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Broadband Srs | Liberty Global vs. Liberty Global PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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