Correlation Between BlueFocus Communication and Fibocom Wireless
Specify exactly 2 symbols:
By analyzing existing cross correlation between BlueFocus Communication Group and Fibocom Wireless, you can compare the effects of market volatilities on BlueFocus Communication 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 BlueFocus Communication with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Fibocom Wireless.
Diversification Opportunities for BlueFocus Communication and Fibocom Wireless
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BlueFocus and Fibocom is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and BlueFocus Communication 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 BlueFocus Communication Group 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 BlueFocus Communication i.e., BlueFocus Communication and Fibocom Wireless go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Fibocom Wireless
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 1.2 times more return on investment than Fibocom Wireless. However, BlueFocus Communication is 1.2 times more volatile than Fibocom Wireless. It trades about 0.06 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.03 per unit of risk. If you would invest 486.00 in BlueFocus Communication Group on September 12, 2024 and sell it today you would earn a total of 674.00 from holding BlueFocus Communication Group or generate 138.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Fibocom Wireless
Performance |
| Timeline |
| BlueFocus Communication |
| Fibocom Wireless |
BlueFocus Communication and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Fibocom Wireless
The main advantage of trading using opposite BlueFocus Communication and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication 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.The idea behind BlueFocus Communication Group and Fibocom Wireless pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Fibocom Wireless vs. Gansu Jiu Steel | Fibocom Wireless vs. Shandong Mining Machinery | Fibocom Wireless vs. Aba Chemicals Corp | Fibocom Wireless vs. BlueFocus Communication Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |