Correlation Between Fibocom Wireless and Fujian Wanchen
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By analyzing existing cross correlation between Fibocom Wireless and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Fibocom Wireless and Fujian Wanchen 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 Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Fujian Wanchen.
Diversification Opportunities for Fibocom Wireless and Fujian Wanchen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fibocom and Fujian is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Fujian Wanchen
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.57 times more return on investment than Fujian Wanchen. However, Fibocom Wireless is 1.57 times more volatile than Fujian Wanchen Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 1,834 in Fibocom Wireless on October 16, 2024 and sell it today you would earn a total of 23.00 from holding Fibocom Wireless or generate 1.25% 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. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Fibocom Wireless |
| Fujian Wanchen Biote |
Fibocom Wireless and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Fujian Wanchen
The main advantage of trading using opposite Fibocom Wireless and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Fujian Wanchen 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 Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Fibocom Wireless vs. Xiangyang Automobile Bearing | Fibocom Wireless vs. Yingde Greatchem Chemicals | Fibocom Wireless vs. Do Fluoride Chemicals Co | Fibocom Wireless vs. Yindu Kitchen Equipment |
| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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