Correlation Between Chenzhou Jingui and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Fiberhome Telecommunicatio.
Diversification Opportunities for Chenzhou Jingui and Fiberhome Telecommunicatio
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chenzhou and Fiberhome is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.09 times more return on investment than Fiberhome Telecommunicatio. However, Chenzhou Jingui is 1.09 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.08 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.1 per unit of risk. If you would invest 387.00 in Chenzhou Jingui Silver on October 11, 2024 and sell it today you would lose (43.00) from holding Chenzhou Jingui Silver or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Fiberhome Telecommunicatio |
Chenzhou Jingui and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Fiberhome Telecommunicatio
The main advantage of trading using opposite Chenzhou Jingui and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.| Chenzhou Jingui vs. Jilin Chemical Fibre | Chenzhou Jingui vs. Dymatic Chemicals | Chenzhou Jingui vs. Chengdu Spaceon Electronics | Chenzhou Jingui vs. Wuxi Chemical Equipment |
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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