Correlation Between Shenzhen Centralcon and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Shenzhen Centralcon and Fiberhome Telecommunicatio 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 Shenzhen Centralcon with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Fiberhome Telecommunicatio.
Diversification Opportunities for Shenzhen Centralcon and Fiberhome Telecommunicatio
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Fiberhome is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Shenzhen Centralcon is 1.14 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.01 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 per unit of volatility. If you would invest 1,311 in Fiberhome Telecommunication Technologies on September 14, 2024 and sell it today you would earn a total of 556.00 from holding Fiberhome Telecommunication Technologies or generate 42.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Shenzhen Centralcon |
| Fiberhome Telecommunicatio |
Shenzhen Centralcon and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Fiberhome Telecommunicatio
The main advantage of trading using opposite Shenzhen Centralcon and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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