Correlation Between Fibocom Wireless and Guizhou Chanhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fibocom Wireless and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Fibocom Wireless and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Guizhou Chanhen.
Diversification Opportunities for Fibocom Wireless and Guizhou Chanhen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fibocom and Guizhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Guizhou Chanhen
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 2.03 times more return on investment than Guizhou Chanhen. However, Fibocom Wireless is 2.03 times more volatile than Guizhou Chanhen Chemical. It trades about 0.05 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.05 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 59.00 from holding Fibocom Wireless or generate 3.24% 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. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Fibocom Wireless |
| Guizhou Chanhen Chemical |
Fibocom Wireless and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Guizhou Chanhen
The main advantage of trading using opposite Fibocom Wireless and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen'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 |
| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |