Correlation Between Chinese Universe and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Chinese Universe Publishing and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Fiberhome Telecommunicatio.
Diversification Opportunities for Chinese Universe and Fiberhome Telecommunicatio
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Fiberhome is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Chinese Universe and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.06 times more return on investment than Fiberhome Telecommunicatio. However, Chinese Universe is 1.06 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.02 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.01 per unit of risk. If you would invest 1,182 in Chinese Universe Publishing on August 25, 2024 and sell it today you would earn a total of 61.00 from holding Chinese Universe Publishing or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Chinese Universe Pub |
| Fiberhome Telecommunicatio |
Chinese Universe and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Fiberhome Telecommunicatio
The main advantage of trading using opposite Chinese Universe and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. Sinomach General Machinery | Chinese Universe vs. Vanfund Urban Investment | Chinese Universe vs. Zhejiang Yinlun Machinery | Chinese Universe vs. Shaanxi Construction Machinery |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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