Correlation Between Sichuan Fulin and Fibocom Wireless
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By analyzing existing cross correlation between Sichuan Fulin Transportation and Fibocom Wireless, you can compare the effects of market volatilities on Sichuan Fulin 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 Sichuan Fulin with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and Fibocom Wireless.
Diversification Opportunities for Sichuan Fulin and Fibocom Wireless
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Fibocom is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Sichuan Fulin 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 Sichuan Fulin Transportation 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 Sichuan Fulin i.e., Sichuan Fulin and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Sichuan Fulin and Fibocom Wireless
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Fulin Transportation is 1.45 times less risky than Fibocom Wireless. The stock trades about -0.03 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,819 in Fibocom Wireless on October 11, 2024 and sell it today you would earn a total of 143.00 from holding Fibocom Wireless or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. Fibocom Wireless
Performance |
| Timeline |
| Sichuan Fulin Transp |
| Fibocom Wireless |
Sichuan Fulin and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and Fibocom Wireless
The main advantage of trading using opposite Sichuan Fulin and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin 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.| Sichuan Fulin vs. Dareway Software Co | Sichuan Fulin vs. Muyuan Foodstuff Co | Sichuan Fulin vs. Ligao Foods CoLtd | Sichuan Fulin vs. Great Sun Foods Co |
| Fibocom Wireless vs. Nexchip Semiconductor Corp | Fibocom Wireless vs. V V Food | Fibocom Wireless vs. Yankershop Food Co | Fibocom Wireless vs. Eastroc Beverage Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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