Correlation Between Fibocom Wireless and Kangxin New
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By analyzing existing cross correlation between Fibocom Wireless and Kangxin New Materials, you can compare the effects of market volatilities on Fibocom Wireless and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Kangxin New.
Diversification Opportunities for Fibocom Wireless and Kangxin New
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fibocom and Kangxin is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Kangxin New go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Kangxin New
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.49 times more return on investment than Kangxin New. However, Fibocom Wireless is 1.49 times more volatile than Kangxin New Materials. It trades about 0.18 of its potential returns per unit of risk. Kangxin New Materials is currently generating about 0.08 per unit of risk. If you would invest 1,177 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,835 from holding Fibocom Wireless or generate 155.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Kangxin New Materials
Performance |
| Timeline |
| Fibocom Wireless |
| Kangxin New Materials |
Fibocom Wireless and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Kangxin New
The main advantage of trading using opposite Fibocom Wireless and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Fibocom Wireless vs. Fiberhome Telecommunication Technologies | Fibocom Wireless vs. Jiangsu Hoperun Software | Fibocom Wireless vs. 360 Security Technology | Fibocom Wireless vs. Linkage Software Co |
| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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