Correlation Between Aba Chemicals and Fibocom Wireless
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By analyzing existing cross correlation between Aba Chemicals Corp and Fibocom Wireless, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Fibocom Wireless.
Diversification Opportunities for Aba Chemicals and Fibocom Wireless
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and Fibocom is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Aba Chemicals and Fibocom Wireless
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.01 times less risky than Fibocom Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,427 in Fibocom Wireless on September 12, 2024 and sell it today you would earn a total of 392.00 from holding Fibocom Wireless or generate 27.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Fibocom Wireless
Performance |
| Timeline |
| Aba Chemicals Corp |
| Fibocom Wireless |
Aba Chemicals and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Fibocom Wireless
The main advantage of trading using opposite Aba Chemicals and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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