Correlation Between Fibocom Wireless and Nanxing Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fibocom Wireless and Nanxing Furniture Machinery, you can compare the effects of market volatilities on Fibocom Wireless and Nanxing Furniture 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 Nanxing Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Nanxing Furniture.
Diversification Opportunities for Fibocom Wireless and Nanxing Furniture
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fibocom and Nanxing is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Nanxing Furniture Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanxing Furniture 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 Nanxing Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanxing Furniture has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Nanxing Furniture go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Nanxing Furniture
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.19 times less return on investment than Nanxing Furniture. In addition to that, Fibocom Wireless is 1.14 times more volatile than Nanxing Furniture Machinery. It trades about 0.02 of its total potential returns per unit of risk. Nanxing Furniture Machinery is currently generating about 0.03 per unit of volatility. If you would invest 1,101 in Nanxing Furniture Machinery on October 13, 2024 and sell it today you would earn a total of 312.00 from holding Nanxing Furniture Machinery or generate 28.34% 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. Nanxing Furniture Machinery
Performance |
| Timeline |
| Fibocom Wireless |
| Nanxing Furniture |
Fibocom Wireless and Nanxing Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Nanxing Furniture
The main advantage of trading using opposite Fibocom Wireless and Nanxing Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Nanxing Furniture 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 Nanxing Furniture will offset losses from the drop in Nanxing Furniture's long position.| Fibocom Wireless vs. Hangzhou Gaoxin Rubber | Fibocom Wireless vs. Kunwu Jiuding Investment | Fibocom Wireless vs. Hangzhou Arcvideo Technology | Fibocom Wireless vs. Zhongrun Resources Investment |
| Nanxing Furniture vs. Runjian Communication Co | Nanxing Furniture vs. Allwin Telecommunication Co | Nanxing Furniture vs. Fibocom Wireless | Nanxing Furniture vs. Jason Furniture |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |