Correlation Between Yingde Greatchem and Fibocom Wireless
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Fibocom Wireless, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Fibocom Wireless.
Diversification Opportunities for Yingde Greatchem and Fibocom Wireless
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yingde and Fibocom is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Fibocom Wireless
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.25 times less risky than Fibocom Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,881 in Fibocom Wireless on October 16, 2024 and sell it today you would lose (24.00) from holding Fibocom Wireless or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Fibocom Wireless
Performance |
| Timeline |
| Yingde Greatchem Che |
| Fibocom Wireless |
Yingde Greatchem and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Fibocom Wireless
The main advantage of trading using opposite Yingde Greatchem and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Hubeiyichang Transportation Group | Yingde Greatchem vs. Jiangsu Broadcasting Cable | Yingde Greatchem vs. Air China Ltd | Yingde Greatchem vs. Fujian Longzhou Transportation |
| Fibocom Wireless vs. Telling Telecommunication Holding | Fibocom Wireless vs. Lander Sports Development | Fibocom Wireless vs. Beijing Enlight Media | Fibocom Wireless vs. Guangzhou Haige Communications |
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 Stocks Directory module to find actively traded stocks across global markets.
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