Correlation Between Aba Chemicals and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Fiberhome Telecommunicatio.
Diversification Opportunities for Aba Chemicals and Fiberhome Telecommunicatio
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and Fiberhome is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 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 Aba Chemicals i.e., Aba Chemicals and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Aba Chemicals and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Aba Chemicals is 1.46 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.17 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.19 per unit of volatility. If you would invest 2,021 in Fiberhome Telecommunication Technologies on September 13, 2024 and sell it today you would lose (164.00) from holding Fiberhome Telecommunication Technologies or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Aba Chemicals Corp |
| Fiberhome Telecommunicatio |
Aba Chemicals and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Fiberhome Telecommunicatio
The main advantage of trading using opposite Aba Chemicals and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Changchun Faway Automobile | Aba Chemicals vs. Zhongyin Babi Food | Aba Chemicals vs. Jiangsu Financial Leasing | Aba Chemicals vs. Xiangyang Automobile Bearing |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |