Correlation Between Fibocom Wireless and Xinjiang Baodi
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By analyzing existing cross correlation between Fibocom Wireless and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Fibocom Wireless and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Xinjiang Baodi.
Diversification Opportunities for Fibocom Wireless and Xinjiang Baodi
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fibocom and Xinjiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Xinjiang Baodi
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.63 times more return on investment than Xinjiang Baodi. However, Fibocom Wireless is 1.63 times more volatile than Xinjiang Baodi Mining. It trades about 0.13 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.07 per unit of risk. If you would invest 1,425 in Fibocom Wireless on October 14, 2024 and sell it today you would earn a total of 472.00 from holding Fibocom Wireless or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Fibocom Wireless vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Fibocom Wireless |
| Xinjiang Baodi Mining |
Fibocom Wireless and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Xinjiang Baodi
The main advantage of trading using opposite Fibocom Wireless and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| Fibocom Wireless vs. Touchstone International Medical | Fibocom Wireless vs. StarPower Semiconductor | Fibocom Wireless vs. Shenzhen Glory Medical | Fibocom Wireless vs. Eyebright Medical Technology |
| Xinjiang Baodi vs. Jinhe Biotechnology Co | Xinjiang Baodi vs. Fibocom Wireless | Xinjiang Baodi vs. Guangzhou Haige Communications | Xinjiang Baodi vs. Guangzhou Zhujiang Brewery |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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