Correlation Between Fibocom Wireless and Ningbo Homelink
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By analyzing existing cross correlation between Fibocom Wireless and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Fibocom Wireless and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Ningbo Homelink.
Diversification Opportunities for Fibocom Wireless and Ningbo Homelink
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fibocom and Ningbo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Ningbo Homelink
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.45 times more return on investment than Ningbo Homelink. However, Fibocom Wireless is 1.45 times more volatile than Ningbo Homelink Eco iTech. It trades about 0.03 of its potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.09 per unit of risk. If you would invest 1,944 in Fibocom Wireless on October 12, 2024 and sell it today you would earn a total of 18.00 from holding Fibocom Wireless or generate 0.93% 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. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Fibocom Wireless |
| Ningbo Homelink Eco |
Fibocom Wireless and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Ningbo Homelink
The main advantage of trading using opposite Fibocom Wireless and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Fibocom Wireless vs. Jiangsu Financial Leasing | Fibocom Wireless vs. Lonkey Industrial Co | Fibocom Wireless vs. Leyard Optoelectronic | Fibocom Wireless vs. Success Electronics |
| Ningbo Homelink vs. Fibocom Wireless | Ningbo Homelink vs. Iat Automobile Technology | Ningbo Homelink vs. Nanjing Putian Telecommunications | Ningbo Homelink vs. Xiangyang Automobile Bearing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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