Correlation Between Guangzhou Haige and Fibocom Wireless
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By analyzing existing cross correlation between Guangzhou Haige Communications and Fibocom Wireless, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Fibocom Wireless.
Diversification Opportunities for Guangzhou Haige and Fibocom Wireless
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and Fibocom is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Fibocom Wireless
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 2.67 times less risky than Fibocom Wireless. The stock trades about -0.24 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,692 in Fibocom Wireless on October 30, 2024 and sell it today you would earn a total of 1,320 from holding Fibocom Wireless or generate 78.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Fibocom Wireless
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Fibocom Wireless |
Guangzhou Haige and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Fibocom Wireless
The main advantage of trading using opposite Guangzhou Haige and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
| Fibocom Wireless vs. Sino Platinum Metals Co | Fibocom Wireless vs. Rising Nonferrous Metals | Fibocom Wireless vs. Porton Fine Chemicals | Fibocom Wireless vs. Zhejiang Yongjin Metal |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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