Correlation Between Fibocom Wireless and Shenzhen Noposion
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By analyzing existing cross correlation between Fibocom Wireless and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Fibocom Wireless and Shenzhen Noposion 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 Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Shenzhen Noposion.
Diversification Opportunities for Fibocom Wireless and Shenzhen Noposion
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fibocom and Shenzhen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Shenzhen Noposion
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.46 times more return on investment than Shenzhen Noposion. However, Fibocom Wireless is 1.46 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.05 per unit of risk. If you would invest 1,746 in Fibocom Wireless on October 31, 2024 and sell it today you would earn a total of 1,266 from holding Fibocom Wireless or generate 72.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fibocom Wireless vs. Shenzhen Noposion Agrochemical
Performance |
Timeline |
Fibocom Wireless |
Shenzhen Noposion |
Fibocom Wireless and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fibocom Wireless and Shenzhen Noposion
The main advantage of trading using opposite Fibocom Wireless and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Shenzhen Noposion 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 Noposion will offset losses from the drop in Shenzhen Noposion's long position.Fibocom Wireless vs. Bus Online Co | ||
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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