Correlation Between Shandong Intco and Fibocom Wireless
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By analyzing existing cross correlation between Shandong Intco Medical and Fibocom Wireless, you can compare the effects of market volatilities on Shandong Intco and Fibocom Wireless 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 Shandong Intco with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Intco and Fibocom Wireless.
Diversification Opportunities for Shandong Intco and Fibocom Wireless
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Fibocom is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Intco Medical and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Shandong Intco 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 Shandong Intco Medical are associated (or correlated) with Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Shandong Intco i.e., Shandong Intco and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Shandong Intco and Fibocom Wireless
Assuming the 90 days trading horizon Shandong Intco is expected to generate 49.36 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Shandong Intco Medical is 2.78 times less risky than Fibocom Wireless. It trades about 0.01 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,652 in Fibocom Wireless on October 26, 2024 and sell it today you would earn a total of 1,103 from holding Fibocom Wireless or generate 66.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Intco Medical vs. Fibocom Wireless
Performance |
| Timeline |
| Shandong Intco Medical |
| Fibocom Wireless |
Shandong Intco and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Intco and Fibocom Wireless
The main advantage of trading using opposite Shandong Intco and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Intco position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Shandong Intco vs. Agricultural Bank of | Shandong Intco vs. Industrial and Commercial | Shandong Intco vs. Bank of China | Shandong Intco vs. China Construction Bank |
| Fibocom Wireless vs. JCHX Mining Management | Fibocom Wireless vs. Shandong Intco Medical | Fibocom Wireless vs. APT 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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