Correlation Between Fujian Longzhou and Fibocom Wireless
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Fibocom Wireless, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Fibocom Wireless.
Diversification Opportunities for Fujian Longzhou and Fibocom Wireless
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fujian and Fibocom is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Fujian Longzhou 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 Fujian Longzhou 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 Fujian Longzhou i.e., Fujian Longzhou and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Fibocom Wireless
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Longzhou Transportation is 1.36 times less risky than Fibocom Wireless. The stock trades about -0.36 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Fibocom Wireless
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Fibocom Wireless |
Fujian Longzhou and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Fibocom Wireless
The main advantage of trading using opposite Fujian Longzhou and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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