Correlation Between XinJiang GuoTong and Fibocom Wireless
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Fibocom Wireless, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Fibocom Wireless.
Diversification Opportunities for XinJiang GuoTong and Fibocom Wireless
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XinJiang and Fibocom is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Fibocom Wireless go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Fibocom Wireless
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Fibocom Wireless. In addition to that, XinJiang GuoTong is 1.01 times more volatile than Fibocom Wireless. It trades about -0.26 of its total potential returns per unit of risk. Fibocom Wireless is currently generating about 0.03 per unit of volatility. If you would invest 1,834 in Fibocom Wireless on October 16, 2024 and sell it today you would earn a total of 23.00 from holding Fibocom Wireless or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Fibocom Wireless
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Fibocom Wireless |
XinJiang GuoTong and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Fibocom Wireless
The main advantage of trading using opposite XinJiang GuoTong and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Guangdong Transtek Medical | XinJiang GuoTong vs. Dongguan Tarry Electronics | XinJiang GuoTong vs. CareRay Digital Medical | XinJiang GuoTong vs. Allmed Medical Products |
| Fibocom Wireless vs. Xiangyang Automobile Bearing | Fibocom Wireless vs. Yingde Greatchem Chemicals | Fibocom Wireless vs. Do Fluoride Chemicals Co | Fibocom Wireless vs. Yindu Kitchen Equipment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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