Correlation Between Fibocom Wireless and Bank of Communications
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By analyzing existing cross correlation between Fibocom Wireless and Bank of Communications, you can compare the effects of market volatilities on Fibocom Wireless and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Bank of Communications.
Diversification Opportunities for Fibocom Wireless and Bank of Communications
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fibocom and Bank is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Bank of Communications go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Bank of Communications
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.29 times less return on investment than Bank of Communications. In addition to that, Fibocom Wireless is 2.7 times more volatile than Bank of Communications. It trades about 0.02 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.08 per unit of volatility. If you would invest 457.00 in Bank of Communications on October 14, 2024 and sell it today you would earn a total of 283.00 from holding Bank of Communications or generate 61.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Bank of Communications
Performance |
| Timeline |
| Fibocom Wireless |
| Bank of Communications |
Fibocom Wireless and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Bank of Communications
The main advantage of trading using opposite Fibocom Wireless and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' 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 |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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