Correlation Between Sino Wealth and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Sino Wealth Electronic and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Sino Wealth 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 Sino Wealth with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Wealth and Fiberhome Telecommunicatio.
Diversification Opportunities for Sino Wealth and Fiberhome Telecommunicatio
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sino and Fiberhome is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sino Wealth Electronic and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Sino Wealth 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 Sino Wealth Electronic 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 Sino Wealth i.e., Sino Wealth and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Sino Wealth and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Sino Wealth Electronic is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Sino Wealth is 1.16 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.02 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 per unit of volatility. If you would invest 1,362 in Fiberhome Telecommunication Technologies on September 3, 2024 and sell it today you would earn a total of 461.00 from holding Fiberhome Telecommunication Technologies or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Wealth Electronic vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Sino Wealth Electronic |
| Fiberhome Telecommunicatio |
Sino Wealth and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Wealth and Fiberhome Telecommunicatio
The main advantage of trading using opposite Sino Wealth and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Wealth 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.| Sino Wealth vs. Zhongshan Broad Ocean Motor | Sino Wealth vs. Shandong Mining Machinery | Sino Wealth vs. Hunan TV Broadcast | Sino Wealth vs. JCHX Mining Management |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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