Correlation Between Neo Performance and FingerMotion
Can any of the company-specific risk be diversified away by investing in both Neo Performance and FingerMotion 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 Neo Performance and FingerMotion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neo Performance Materials and FingerMotion, you can compare the effects of market volatilities on Neo Performance and FingerMotion 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 Neo Performance with a short position of FingerMotion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neo Performance and FingerMotion.
Diversification Opportunities for Neo Performance and FingerMotion
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neo and FingerMotion is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Neo Performance Materials and FingerMotion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FingerMotion and Neo Performance 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 Neo Performance Materials are associated (or correlated) with FingerMotion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FingerMotion has no effect on the direction of Neo Performance i.e., Neo Performance and FingerMotion go up and down completely randomly.
Pair Corralation between Neo Performance and FingerMotion
Assuming the 90 days horizon Neo Performance Materials is expected to generate 0.82 times more return on investment than FingerMotion. However, Neo Performance Materials is 1.21 times less risky than FingerMotion. It trades about 0.04 of its potential returns per unit of risk. FingerMotion is currently generating about -0.01 per unit of risk. If you would invest 1,205 in Neo Performance Materials on September 4, 2025 and sell it today you would earn a total of 48.00 from holding Neo Performance Materials or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neo Performance Materials vs. FingerMotion
Performance |
| Timeline |
| Neo Performance Materials |
| FingerMotion |
Neo Performance and FingerMotion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neo Performance and FingerMotion
The main advantage of trading using opposite Neo Performance and FingerMotion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neo Performance position performs unexpectedly, FingerMotion 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 FingerMotion will offset losses from the drop in FingerMotion's long position.| Neo Performance vs. Wireless Xcessories Group | Neo Performance vs. World of Wireless | Neo Performance vs. T Mobile US, 5500 | Neo Performance vs. Cabal Communications |
| FingerMotion vs. Kossan Rubber Industries | FingerMotion vs. Yulong Eco Materials | FingerMotion vs. Neo Performance Materials | FingerMotion vs. Martin Marietta Materials |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |