Correlation Between Jiaozuo Wanfang and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Jiaozuo Wanfang 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 Jiaozuo Wanfang with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Fiberhome Telecommunicatio.
Diversification Opportunities for Jiaozuo Wanfang and Fiberhome Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiaozuo and Fiberhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Jiaozuo Wanfang is 1.3 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.03 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 1,647 in Fiberhome Telecommunication Technologies on August 25, 2024 and sell it today you would earn a total of 151.00 from holding Fiberhome Telecommunication Technologies or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Fiberhome Telecommunicatio |
Jiaozuo Wanfang and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Fiberhome Telecommunicatio
The main advantage of trading using opposite Jiaozuo Wanfang and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang 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.| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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