Correlation Between Shenzhen Glory and Fibocom Wireless
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By analyzing existing cross correlation between Shenzhen Glory Medical and Fibocom Wireless, you can compare the effects of market volatilities on Shenzhen Glory 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 Shenzhen Glory with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Fibocom Wireless.
Diversification Opportunities for Shenzhen Glory and Fibocom Wireless
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Fibocom is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Shenzhen Glory 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 Glory Medical 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 Shenzhen Glory i.e., Shenzhen Glory and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Fibocom Wireless
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Glory Medical is 1.3 times less risky than Fibocom Wireless. The stock trades about 0.0 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,425 in Fibocom Wireless on October 14, 2024 and sell it today you would earn a total of 472.00 from holding Fibocom Wireless or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Fibocom Wireless
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Fibocom Wireless |
Shenzhen Glory and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Fibocom Wireless
The main advantage of trading using opposite Shenzhen Glory and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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.| Shenzhen Glory vs. Soochow Suzhou Industrial | Shenzhen Glory vs. Tibet Huayu Mining | Shenzhen Glory vs. Tieling Newcity Investment | Shenzhen Glory vs. Universal Scientific Industrial |
| Fibocom Wireless vs. Touchstone International Medical | Fibocom Wireless vs. StarPower Semiconductor | Fibocom Wireless vs. Shenzhen Glory Medical | Fibocom Wireless vs. Eyebright Medical Technology |
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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