Correlation Between Xinjiang Communications and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Fiberhome Telecommunicatio.
Diversification Opportunities for Xinjiang Communications and Fiberhome Telecommunicatio
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Fiberhome is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.05 times more return on investment than Fiberhome Telecommunicatio. However, Xinjiang Communications is 1.05 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.2 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.07 per unit of risk. If you would invest 1,138 in Xinjiang Communications Construction on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Xinjiang Communications Construction or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Xinjiang Communications |
| Fiberhome Telecommunicatio |
Xinjiang Communications and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Fiberhome Telecommunicatio
The main advantage of trading using opposite Xinjiang Communications and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |