Correlation Between Fiberhome Telecommunicatio and XinJiang GuoTong
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By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and XinJiang GuoTong.
Diversification Opportunities for Fiberhome Telecommunicatio and XinJiang GuoTong
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fiberhome and XinJiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and XinJiang GuoTong
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 0.9 times more return on investment than XinJiang GuoTong. However, Fiberhome Telecommunication Technologies is 1.11 times less risky than XinJiang GuoTong. It trades about 0.03 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.01 per unit of risk. If you would invest 1,341 in Fiberhome Telecommunication Technologies on October 7, 2024 and sell it today you would earn a total of 384.00 from holding Fiberhome Telecommunication Technologies or generate 28.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| XinJiang GuoTong Pipeline |
Fiberhome Telecommunicatio and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and XinJiang GuoTong
The main advantage of trading using opposite Fiberhome Telecommunicatio and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Fiberhome Telecommunicatio vs. PetroChina Co Ltd | Fiberhome Telecommunicatio vs. Gansu Jiu Steel | Fiberhome Telecommunicatio vs. Aba Chemicals Corp | Fiberhome Telecommunicatio vs. Yes Optoelectronics Co |
| XinJiang GuoTong vs. BeiGene | XinJiang GuoTong vs. G bits Network Technology | XinJiang GuoTong vs. China Mobile Limited | XinJiang GuoTong vs. Gansu Jiu Steel |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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