Correlation Between Yunnan Xiyi and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Yunnan Xiyi Industrial and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Yunnan Xiyi 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 Yunnan Xiyi with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Xiyi and Fiberhome Telecommunicatio.
Diversification Opportunities for Yunnan Xiyi and Fiberhome Telecommunicatio
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yunnan and Fiberhome is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Xiyi Industrial and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Yunnan Xiyi 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 Yunnan Xiyi Industrial 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 Yunnan Xiyi i.e., Yunnan Xiyi and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Yunnan Xiyi and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Yunnan Xiyi Industrial is expected to generate 3.02 times more return on investment than Fiberhome Telecommunicatio. However, Yunnan Xiyi is 3.02 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.75 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.13 per unit of risk. If you would invest 1,202 in Yunnan Xiyi Industrial on September 15, 2024 and sell it today you would earn a total of 1,622 from holding Yunnan Xiyi Industrial or generate 134.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Xiyi Industrial vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Yunnan Xiyi Industrial |
| Fiberhome Telecommunicatio |
Yunnan Xiyi and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Xiyi and Fiberhome Telecommunicatio
The main advantage of trading using opposite Yunnan Xiyi and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Xiyi 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.| Yunnan Xiyi vs. Shantou Wanshun Package | Yunnan Xiyi vs. Will Semiconductor Co | Yunnan Xiyi vs. GigaDevice SemiconductorBeiji | Yunnan Xiyi vs. Guangdong Wens Foodstuff |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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