Correlation Between Fujian Wanchen and Fibocom Wireless
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Fibocom Wireless, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Fibocom Wireless.
Diversification Opportunities for Fujian Wanchen and Fibocom Wireless
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Fibocom is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Fibocom Wireless
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.18 times more return on investment than Fibocom Wireless. However, Fujian Wanchen is 1.18 times more volatile than Fibocom Wireless. It trades about 0.11 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.02 per unit of risk. If you would invest 1,270 in Fujian Wanchen Biotechnology on October 16, 2024 and sell it today you would earn a total of 6,465 from holding Fujian Wanchen Biotechnology or generate 509.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Fibocom Wireless
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Fibocom Wireless |
Fujian Wanchen and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Fibocom Wireless
The main advantage of trading using opposite Fujian Wanchen and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Haima Automobile Group | Fujian Wanchen vs. Holitech Technology Co | Fujian Wanchen vs. Wuhan Yangtze Communication | Fujian Wanchen vs. Sunwave Communications Co |
| 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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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