Correlation Between Fibocom Wireless and Sichuan Fulin
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By analyzing existing cross correlation between Fibocom Wireless and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Fibocom Wireless and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Sichuan Fulin.
Diversification Opportunities for Fibocom Wireless and Sichuan Fulin
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fibocom and Sichuan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Sichuan Fulin
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.45 times more return on investment than Sichuan Fulin. However, Fibocom Wireless is 1.45 times more volatile than Sichuan Fulin Transportation. It trades about 0.09 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about -0.03 per unit of risk. If you would invest 1,819 in Fibocom Wireless on October 11, 2024 and sell it today you would earn a total of 143.00 from holding Fibocom Wireless or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Fibocom Wireless |
| Sichuan Fulin Transp |
Fibocom Wireless and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Sichuan Fulin
The main advantage of trading using opposite Fibocom Wireless and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Fibocom Wireless vs. Nexchip Semiconductor Corp | Fibocom Wireless vs. V V Food | Fibocom Wireless vs. Yankershop Food Co | Fibocom Wireless vs. Eastroc Beverage Group |
| Sichuan Fulin vs. Dareway Software Co | Sichuan Fulin vs. Muyuan Foodstuff Co | Sichuan Fulin vs. Ligao Foods CoLtd | Sichuan Fulin vs. Great Sun Foods 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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