Correlation Between Shenzhen and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Shenzhen AV Display Co and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Shenzhen and Fiberhome Telecommunicatio 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 Shenzhen with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Fiberhome Telecommunicatio.
Diversification Opportunities for Shenzhen and Fiberhome Telecommunicatio
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Fiberhome is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Shenzhen 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 Shenzhen AV Display Co are associated (or correlated) with Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Shenzhen i.e., Shenzhen and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenzhen and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Fiberhome Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen AV Display Co is 1.02 times less risky than Fiberhome Telecommunicatio. The stock trades about -0.16 of its potential returns per unit of risk. The Fiberhome Telecommunication Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,857 in Fiberhome Telecommunication Technologies on October 12, 2024 and sell it today you would earn a total of 18.00 from holding Fiberhome Telecommunication Technologies or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Shenzhen AV Display |
| Fiberhome Telecommunicatio |
Shenzhen and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Fiberhome Telecommunicatio
The main advantage of trading using opposite Shenzhen and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Shenzhen vs. Zhongshan Public Utilities | Shenzhen vs. Kingsignal Technology Co | Shenzhen vs. Kuangda Technology Group | Shenzhen vs. CIMC Vehicles Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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