Correlation Between Fiberhome Telecommunicatio and Henan Shuanghui
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By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Henan Shuanghui Investment, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Henan Shuanghui 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 Fiberhome Telecommunicatio with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Henan Shuanghui.
Diversification Opportunities for Fiberhome Telecommunicatio and Henan Shuanghui
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fiberhome and Henan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Fiberhome Telecommunicatio 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 Fiberhome Telecommunication Technologies are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Henan Shuanghui
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 2.34 times more return on investment than Henan Shuanghui. However, Fiberhome Telecommunicatio is 2.34 times more volatile than Henan Shuanghui Investment. It trades about 0.09 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.09 per unit of risk. If you would invest 1,805 in Fiberhome Telecommunication Technologies on November 3, 2024 and sell it today you would earn a total of 85.00 from holding Fiberhome Telecommunication Technologies or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Henan Shuanghui Inve |
Fiberhome Telecommunicatio and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Henan Shuanghui
The main advantage of trading using opposite Fiberhome Telecommunicatio and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Fiberhome Telecommunicatio vs. New Hope Dairy | Fiberhome Telecommunicatio vs. Gan Yuan Foods | Fiberhome Telecommunicatio vs. Ligao Foods CoLtd | Fiberhome Telecommunicatio vs. Anji Foodstuff Co |
| Henan Shuanghui vs. Central Plains Environment | Henan Shuanghui vs. Yuanjie Semiconductor Technology | Henan Shuanghui vs. Nexchip Semiconductor Corp | Henan Shuanghui vs. StarPower Semiconductor |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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