Correlation Between Fibocom Wireless and Shenzhen Agricultural
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By analyzing existing cross correlation between Fibocom Wireless and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Fibocom Wireless and Shenzhen Agricultural 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 Fibocom Wireless with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Shenzhen Agricultural.
Diversification Opportunities for Fibocom Wireless and Shenzhen Agricultural
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fibocom and Shenzhen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Fibocom Wireless 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 Fibocom Wireless are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Shenzhen Agricultural
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 2.17 times more return on investment than Shenzhen Agricultural. However, Fibocom Wireless is 2.17 times more volatile than Shenzhen Agricultural Products. It trades about 0.19 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.13 per unit of risk. If you would invest 1,018 in Fibocom Wireless on October 18, 2024 and sell it today you would earn a total of 1,003 from holding Fibocom Wireless or generate 98.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Fibocom Wireless |
| Shenzhen Agricultural |
Fibocom Wireless and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Shenzhen Agricultural
The main advantage of trading using opposite Fibocom Wireless and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Fibocom Wireless vs. Chongqing Brewery Co | Fibocom Wireless vs. Qingdao Foods Co | Fibocom Wireless vs. SSAW Hotels Resorts | Fibocom Wireless vs. Zhejiang Kingland Pipeline |
| Shenzhen Agricultural vs. Western Metal Materials | Shenzhen Agricultural vs. Fibocom Wireless | Shenzhen Agricultural vs. Rising Nonferrous Metals | Shenzhen Agricultural vs. Haima Automobile 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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