Correlation Between Fibocom Wireless and Gansu Jiu
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By analyzing existing cross correlation between Fibocom Wireless and Gansu Jiu Steel, you can compare the effects of market volatilities on Fibocom Wireless and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Gansu Jiu.
Diversification Opportunities for Fibocom Wireless and Gansu Jiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fibocom and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Gansu Jiu go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Gansu Jiu
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.88 times less return on investment than Gansu Jiu. In addition to that, Fibocom Wireless is 1.64 times more volatile than Gansu Jiu Steel. It trades about 0.01 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.04 per unit of volatility. If you would invest 154.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Gansu Jiu Steel or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Gansu Jiu Steel
Performance |
| Timeline |
| Fibocom Wireless |
| Gansu Jiu Steel |
Fibocom Wireless and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Gansu Jiu
The main advantage of trading using opposite Fibocom Wireless and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Fibocom Wireless vs. Gansu Jiu Steel | Fibocom Wireless vs. Shandong Mining Machinery | Fibocom Wireless vs. Aba Chemicals Corp | Fibocom Wireless vs. BlueFocus Communication Group |
| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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