Correlation Between Sinomach Automobile and Fibocom Wireless
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Fibocom Wireless, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Fibocom Wireless.
Diversification Opportunities for Sinomach Automobile and Fibocom Wireless
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinomach and Fibocom is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Sinomach Automobile 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 Sinomach Automobile Co 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 Sinomach Automobile i.e., Sinomach Automobile and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Fibocom Wireless
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.64 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 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,369 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,643 from holding Fibocom Wireless or generate 120.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Fibocom Wireless
Performance |
| Timeline |
| Sinomach Automobile |
| Fibocom Wireless |
Sinomach Automobile and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Fibocom Wireless
The main advantage of trading using opposite Sinomach Automobile and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. New Hope Dairy | Sinomach Automobile vs. Guangzhou Seagull Kitchen | Sinomach Automobile vs. Ligao Foods CoLtd | Sinomach Automobile vs. Anji Foodstuff Co |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |