Correlation Between Fibocom Wireless and Maoming Petro
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By analyzing existing cross correlation between Fibocom Wireless and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Fibocom Wireless and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Maoming Petro.
Diversification Opportunities for Fibocom Wireless and Maoming Petro
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fibocom and Maoming is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Maoming Petro go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Maoming Petro
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 2.12 times more return on investment than Maoming Petro. However, Fibocom Wireless is 2.12 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.16 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.06 per unit of risk. If you would invest 1,212 in Fibocom Wireless on October 26, 2024 and sell it today you would earn a total of 1,543 from holding Fibocom Wireless or generate 127.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Fibocom Wireless |
| Maoming Petro Chemical |
Fibocom Wireless and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Maoming Petro
The main advantage of trading using opposite Fibocom Wireless and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Fibocom Wireless vs. JCHX Mining Management | Fibocom Wireless vs. Shandong Intco Medical | Fibocom Wireless vs. APT Medical | Fibocom Wireless vs. Eyebright Medical Technology |
| Maoming Petro vs. Fibocom Wireless | Maoming Petro vs. Jilin Jlu Communication | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. China Mobile Limited |
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.
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