Correlation Between Fibocom Wireless and Loongson Technology
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By analyzing existing cross correlation between Fibocom Wireless and Loongson Technology Corp, you can compare the effects of market volatilities on Fibocom Wireless and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Loongson Technology.
Diversification Opportunities for Fibocom Wireless and Loongson Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fibocom and Loongson is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Loongson Technology go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Loongson Technology
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.0 times more return on investment than Loongson Technology. However, Fibocom Wireless is 1.0 times more volatile than Loongson Technology Corp. It trades about 0.05 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.02 per unit of risk. If you would invest 1,819 in Fibocom Wireless on November 5, 2024 and sell it today you would earn a total of 1,193 from holding Fibocom Wireless or generate 65.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Loongson Technology Corp
Performance |
| Timeline |
| Fibocom Wireless |
| Loongson Technology Corp |
Fibocom Wireless and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Loongson Technology
The main advantage of trading using opposite Fibocom Wireless and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Fibocom Wireless vs. PKU HealthCare Corp | Fibocom Wireless vs. Everjoy Health Group | Fibocom Wireless vs. HaiXin Foods Co | Fibocom Wireless vs. Yunnan Jianzhijia Health Chain |
| Loongson Technology vs. Jointo Energy Investment | Loongson Technology vs. Shanghai Material Trading | Loongson Technology vs. Beijing Baolande Software | Loongson Technology vs. Hunan Investment Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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