Correlation Between Jiangnan Mould and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Jiangnan Mould 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 Jiangnan Mould with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Fiberhome Telecommunicatio.
Diversification Opportunities for Jiangnan Mould and Fiberhome Telecommunicatio
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangnan and Fiberhome is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Jiangnan Mould 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 Jiangnan Mould Plastic 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 Jiangnan Mould i.e., Jiangnan Mould and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to generate 1.27 times more return on investment than Fiberhome Telecommunicatio. However, Jiangnan Mould is 1.27 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 -0.25 per unit of risk. If you would invest 789.00 in Jiangnan Mould Plastic on September 12, 2024 and sell it today you would lose (14.00) from holding Jiangnan Mould Plastic or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Fiberhome Telecommunicatio |
Jiangnan Mould and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Fiberhome Telecommunicatio
The main advantage of trading using opposite Jiangnan Mould and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould 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.| Jiangnan Mould vs. Suzhou Douson Drilling | Jiangnan Mould vs. Zhejiang Construction Investment | Jiangnan Mould vs. Xiandai Investment Co | Jiangnan Mould vs. Lander Sports Development |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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