Correlation Between Fibocom Wireless and Fujian Longzhou
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By analyzing existing cross correlation between Fibocom Wireless and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Fibocom Wireless and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Fujian Longzhou.
Diversification Opportunities for Fibocom Wireless and Fujian Longzhou
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fibocom and Fujian is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Fujian Longzhou
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.36 times more return on investment than Fujian Longzhou. However, Fibocom Wireless is 1.36 times more volatile than Fujian Longzhou Transportation. It trades about 0.09 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.36 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Fibocom Wireless |
| Fujian Longzhou Tran |
Fibocom Wireless and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Fujian Longzhou
The main advantage of trading using opposite Fibocom Wireless and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou'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 |
| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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