Correlation Between Fibocom Wireless and Hainan Airlines
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By analyzing existing cross correlation between Fibocom Wireless and Hainan Airlines Co, you can compare the effects of market volatilities on Fibocom Wireless and Hainan Airlines 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 Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibocom Wireless and Hainan Airlines.
Diversification Opportunities for Fibocom Wireless and Hainan Airlines
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fibocom and Hainan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fibocom Wireless and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines 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 Hainan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of Fibocom Wireless i.e., Fibocom Wireless and Hainan Airlines go up and down completely randomly.
Pair Corralation between Fibocom Wireless and Hainan Airlines
Assuming the 90 days trading horizon Fibocom Wireless is expected to generate 1.17 times more return on investment than Hainan Airlines. However, Fibocom Wireless is 1.17 times more volatile than Hainan Airlines Co. It trades about 0.02 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about 0.02 per unit of risk. If you would invest 1,707 in Fibocom Wireless on October 16, 2024 and sell it today you would earn a total of 150.00 from holding Fibocom Wireless or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fibocom Wireless vs. Hainan Airlines Co
Performance |
| Timeline |
| Fibocom Wireless |
| Hainan Airlines |
Fibocom Wireless and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fibocom Wireless and Hainan Airlines
The main advantage of trading using opposite Fibocom Wireless and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibocom Wireless position performs unexpectedly, Hainan Airlines 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 Hainan Airlines will offset losses from the drop in Hainan Airlines' long position.| Fibocom Wireless vs. Xiangyang Automobile Bearing | Fibocom Wireless vs. Yingde Greatchem Chemicals | Fibocom Wireless vs. Do Fluoride Chemicals Co | Fibocom Wireless vs. Yindu Kitchen Equipment |
| Hainan Airlines vs. Lootom Telcovideo Network | Hainan Airlines vs. Holitech Technology Co | Hainan Airlines vs. Zhejiang Kingland Pipeline | Hainan Airlines vs. Fujian Wanchen Biotechnology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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