Correlation Between Anhui Jianghuai and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Fiberhome Telecommunicatio.
Diversification Opportunities for Anhui Jianghuai and Fiberhome Telecommunicatio
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Fiberhome is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Anhui Jianghuai is 2.14 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.15 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.19 per unit of volatility. If you would invest 2,021 in Fiberhome Telecommunication Technologies on September 13, 2024 and sell it today you would lose (164.00) from holding Fiberhome Telecommunication Technologies or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Fiberhome Telecommunicatio |
Anhui Jianghuai and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Fiberhome Telecommunicatio
The main advantage of trading using opposite Anhui Jianghuai and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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