Correlation Between Tianjin Pengling and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tianjin Pengling Rubber and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Tianjin Pengling 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 Tianjin Pengling with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and Fiberhome Telecommunicatio.
Diversification Opportunities for Tianjin Pengling and Fiberhome Telecommunicatio
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tianjin and Fiberhome is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Tianjin Pengling 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 Tianjin Pengling Rubber 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 Tianjin Pengling i.e., Tianjin Pengling and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Tianjin Pengling and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to under-perform the Fiberhome Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Pengling Rubber is 1.05 times less risky than Fiberhome Telecommunicatio. The stock trades about -0.06 of its potential returns per unit of risk. The Fiberhome Telecommunication Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,672 in Fiberhome Telecommunication Technologies on October 14, 2024 and sell it today you would earn a total of 146.00 from holding Fiberhome Telecommunication Technologies or generate 8.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tianjin Pengling Rubber vs. Fiberhome Telecommunication Te
Performance |
Timeline |
Tianjin Pengling Rubber |
Fiberhome Telecommunicatio |
Tianjin Pengling and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianjin Pengling and Fiberhome Telecommunicatio
The main advantage of trading using opposite Tianjin Pengling and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling 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.Tianjin Pengling vs. Smartgiant Technology Co | Tianjin Pengling vs. Tianshui Huatian Technology | Tianjin Pengling vs. Iat Automobile Technology | Tianjin Pengling vs. Sinofibers Technology Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest 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 | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |