Correlation Between Citic Offshore and Fibocom Wireless
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By analyzing existing cross correlation between Citic Offshore Helicopter and Fibocom Wireless, you can compare the effects of market volatilities on Citic Offshore and Fibocom Wireless 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 Citic Offshore with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Fibocom Wireless.
Diversification Opportunities for Citic Offshore and Fibocom Wireless
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citic and Fibocom is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Citic Offshore 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 Citic Offshore Helicopter are associated (or correlated) with Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Citic Offshore i.e., Citic Offshore and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Citic Offshore and Fibocom Wireless
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Citic Offshore Helicopter is 2.43 times less risky than Fibocom Wireless. The stock trades about -0.08 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,922 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,090 from holding Fibocom Wireless or generate 56.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Fibocom Wireless
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Fibocom Wireless |
Citic Offshore and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Fibocom Wireless
The main advantage of trading using opposite Citic Offshore and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.The idea behind Citic Offshore Helicopter and Fibocom Wireless 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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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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