Correlation Between Guilin Seamild and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Guilin Seamild Foods and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Fiberhome Telecommunicatio.
Diversification Opportunities for Guilin Seamild and Fiberhome Telecommunicatio
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guilin and Fiberhome is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Guilin Seamild and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 1.87 times less return on investment than Fiberhome Telecommunicatio. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.14 times less risky than Fiberhome Telecommunicatio. It trades about 0.02 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,041 in Fiberhome Telecommunication Technologies on November 27, 2024 and sell it today you would earn a total of 756.00 from holding Fiberhome Telecommunication Technologies or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Guilin Seamild Foods |
| Fiberhome Telecommunicatio |
Guilin Seamild and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Fiberhome Telecommunicatio
The main advantage of trading using opposite Guilin Seamild and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. BrightGene Bio Medical | Guilin Seamild vs. Guangdong Transtek Medical | Guilin Seamild vs. Allgens Medical Technology | Guilin Seamild vs. Xiangyu Medical Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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