Correlation Between Elite Color and Fibocom Wireless
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By analyzing existing cross correlation between Elite Color Environmental and Fibocom Wireless, you can compare the effects of market volatilities on Elite Color 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 Elite Color with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elite Color and Fibocom Wireless.
Diversification Opportunities for Elite Color and Fibocom Wireless
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elite and Fibocom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elite Color Environmental and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Elite Color 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 Elite Color Environmental 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 Elite Color i.e., Elite Color and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Elite Color and Fibocom Wireless
Assuming the 90 days trading horizon Elite Color is expected to generate 31.35 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Elite Color Environmental is 2.88 times less risky than Fibocom Wireless. It trades about 0.02 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,121 in Fibocom Wireless on October 24, 2024 and sell it today you would earn a total of 689.00 from holding Fibocom Wireless or generate 32.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elite Color Environmental vs. Fibocom Wireless
Performance |
| Timeline |
| Elite Color Environmental |
| Fibocom Wireless |
Elite Color and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elite Color and Fibocom Wireless
The main advantage of trading using opposite Elite Color and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elite Color 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.| Elite Color vs. Zijin Mining Group | Elite Color vs. Wanhua Chemical Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Rongsheng Petrochemical Co |
| Fibocom Wireless vs. Kweichow Moutai Co | Fibocom Wireless vs. NAURA Technology Group | Fibocom Wireless vs. APT Medical | Fibocom Wireless vs. BYD Co Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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