Correlation Between Kuang Chi and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Kuang Chi Technologies and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Fiberhome Telecommunicatio.
Diversification Opportunities for Kuang Chi and Fiberhome Telecommunicatio
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuang and Fiberhome is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Kuang Chi and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Kuang Chi is expected to generate 2.21 times less return on investment than Fiberhome Telecommunicatio. In addition to that, Kuang Chi is 1.12 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.01 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.03 per unit of volatility. If you would invest 1,857 in Fiberhome Telecommunication Technologies on October 12, 2024 and sell it today you would earn a total of 18.00 from holding Fiberhome Telecommunication Technologies or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Kuang Chi Technologies |
| Fiberhome Telecommunicatio |
Kuang Chi and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Fiberhome Telecommunicatio
The main advantage of trading using opposite Kuang Chi and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Chengtun Mining Group | Kuang Chi vs. Jiangxi Naipu Mining | Kuang Chi vs. Hainan Mining Co | Kuang Chi vs. Fujian Oriental Silver |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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