Correlation Between Hunan Investment and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Hunan Investment Group and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Fiberhome Telecommunicatio.
Diversification Opportunities for Hunan Investment and Fiberhome Telecommunicatio
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Fiberhome is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Hunan Investment and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.06 times more return on investment than Fiberhome Telecommunicatio. However, Hunan Investment is 1.06 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.02 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.02 per unit of risk. If you would invest 549.00 in Hunan Investment Group on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Hunan Investment Group or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Hunan Investment |
| Fiberhome Telecommunicatio |
Hunan Investment and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Fiberhome Telecommunicatio
The main advantage of trading using opposite Hunan Investment and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Unisplendour Corp | Hunan Investment vs. Longjian Road Bridge | Hunan Investment vs. Xinjiang Beixin RoadBridge | Hunan Investment vs. Shandong Hi Speed RoadBridge |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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