Correlation Between Fibocom Wireless and Shaanxi Broadcast
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By analyzing existing cross correlation between Fibocom Wireless and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Fibocom Wireless and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Shaanxi Broadcast.
Diversification Opportunities for Fibocom Wireless and Shaanxi Broadcast
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fibocom and Shaanxi is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Shaanxi Broadcast
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 2.18 times more return on investment than Shaanxi Broadcast. However, Fibocom Wireless is 2.18 times more volatile than Shaanxi Broadcast TV. It trades about 0.28 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.06 per unit of risk. If you would invest 1,692 in Fibocom Wireless on October 30, 2024 and sell it today you would earn a total of 1,320 from holding Fibocom Wireless or generate 78.01% 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. Shaanxi Broadcast TV
Performance |
| Timeline |
| Fibocom Wireless |
| Shaanxi Broadcast |
Fibocom Wireless and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Shaanxi Broadcast
The main advantage of trading using opposite Fibocom Wireless and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Fibocom Wireless vs. Sino Platinum Metals Co | Fibocom Wireless vs. Rising Nonferrous Metals | Fibocom Wireless vs. Porton Fine Chemicals | Fibocom Wireless vs. Zhejiang Yongjin Metal |
| Shaanxi Broadcast vs. Jiangsu Yueda Investment | Shaanxi Broadcast vs. Luyin Investment Group | Shaanxi Broadcast vs. Shaanxi Energy Investment | Shaanxi Broadcast vs. Jiangsu Hoperun Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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