Correlation Between Fibocom Wireless and Jiangsu GDK
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By analyzing existing cross correlation between Fibocom Wireless and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Fibocom Wireless and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Jiangsu GDK.
Diversification Opportunities for Fibocom Wireless and Jiangsu GDK
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fibocom and Jiangsu is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Jiangsu GDK
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 2.18 times more return on investment than Jiangsu GDK. However, Fibocom Wireless is 2.18 times more volatile than Jiangsu GDK Biotechnology. It trades about 0.28 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.3 per unit of risk. If you would invest 1,709 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,303 from holding Fibocom Wireless or generate 76.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Fibocom Wireless |
| Jiangsu GDK Biotechnology |
Fibocom Wireless and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Jiangsu GDK
The main advantage of trading using opposite Fibocom Wireless and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Fibocom Wireless vs. Sino Medical Sciences | Fibocom Wireless vs. Allgens Medical Technology | Fibocom Wireless vs. Eastroc Beverage Group | Fibocom Wireless vs. Tsingtao Brewery Co |
| Jiangsu GDK vs. Kweichow Moutai Co | Jiangsu GDK vs. G bits Network Technology | Jiangsu GDK vs. Anhui Gujing Distillery | Jiangsu GDK vs. Anhui Gujing Distillery |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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