Correlation Between SSAW Hotels and Fibocom Wireless
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By analyzing existing cross correlation between SSAW Hotels Resorts and Fibocom Wireless, you can compare the effects of market volatilities on SSAW Hotels 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 SSAW Hotels with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Fibocom Wireless.
Diversification Opportunities for SSAW Hotels and Fibocom Wireless
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SSAW and Fibocom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and SSAW Hotels 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 SSAW Hotels Resorts 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 SSAW Hotels i.e., SSAW Hotels and Fibocom Wireless go up and down completely randomly.
Pair Corralation between SSAW Hotels and Fibocom Wireless
Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Fibocom Wireless. In addition to that, SSAW Hotels is 1.08 times more volatile than Fibocom Wireless. It trades about -0.02 of its total potential returns per unit of risk. Fibocom Wireless is currently generating about 0.03 per unit of volatility. If you would invest 1,707 in Fibocom Wireless on October 18, 2024 and sell it today you would earn a total of 314.00 from holding Fibocom Wireless or generate 18.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAW Hotels Resorts vs. Fibocom Wireless
Performance |
| Timeline |
| SSAW Hotels Resorts |
| Fibocom Wireless |
SSAW Hotels and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAW Hotels and Fibocom Wireless
The main advantage of trading using opposite SSAW Hotels and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels 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.| SSAW Hotels vs. Tianshan Aluminum Group | SSAW Hotels vs. Chengtun Mining Group | SSAW Hotels vs. Anhui Tongguan Copper | SSAW Hotels vs. Hainan Mining Co |
| Fibocom Wireless vs. Chongqing Brewery Co | Fibocom Wireless vs. Qingdao Foods Co | Fibocom Wireless vs. SSAW Hotels Resorts | Fibocom Wireless vs. Zhejiang Kingland Pipeline |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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