Correlation Between Rising Nonferrous and Fibocom Wireless
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By analyzing existing cross correlation between Rising Nonferrous Metals and Fibocom Wireless, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Fibocom Wireless.
Diversification Opportunities for Rising Nonferrous and Fibocom Wireless
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rising and Fibocom is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Fibocom Wireless
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 9.23 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Rising Nonferrous Metals is 2.41 times less risky than Fibocom Wireless. It trades about 0.1 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,922 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,090 from holding Fibocom Wireless or generate 56.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Fibocom Wireless
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Fibocom Wireless |
Rising Nonferrous and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Fibocom Wireless
The main advantage of trading using opposite Rising Nonferrous and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Shandong Gold Mining |
| Fibocom Wireless vs. Sino Medical Sciences | Fibocom Wireless vs. Allgens Medical Technology | Fibocom Wireless vs. Eastroc Beverage Group | Fibocom Wireless vs. Tsingtao Brewery 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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