Correlation Between Shenzhen Clou and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Shenzhen Clou 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 Clou with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Fiberhome Telecommunicatio.
Diversification Opportunities for Shenzhen Clou 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 Clou Electronics 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 Clou 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 Clou Electronics 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 Clou i.e., Shenzhen Clou and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.28 times more return on investment than Fiberhome Telecommunicatio. However, Shenzhen Clou is 1.28 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.1 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.01 per unit of risk. If you would invest 429.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Shenzhen Clou Electronics or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Fiberhome Telecommunicatio |
Shenzhen Clou and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Fiberhome Telecommunicatio
The main advantage of trading using opposite Shenzhen Clou and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou 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 Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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