Correlation Between Hubei Yingtong and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Fiberhome Telecommunicatio.
Diversification Opportunities for Hubei Yingtong and Fiberhome Telecommunicatio
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and Fiberhome is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Hubei Yingtong i.e., Hubei Yingtong and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 1.25 times more return on investment than Fiberhome Telecommunicatio. However, Hubei Yingtong is 1.25 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.01 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.02 per unit of risk. If you would invest 1,246 in Hubei Yingtong Telecommunication on August 30, 2024 and sell it today you would lose (3.00) from holding Hubei Yingtong Telecommunication or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Fiberhome Telecommunicatio |
Hubei Yingtong and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Fiberhome Telecommunicatio
The main advantage of trading using opposite Hubei Yingtong and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.| Hubei Yingtong vs. Agricultural Bank of | Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. China Construction Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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