Correlation Between Fiberhome Telecommunicatio and Hubei Yingtong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Hubei Yingtong.
Diversification Opportunities for Fiberhome Telecommunicatio and Hubei Yingtong
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fiberhome and Hubei is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Hubei Yingtong
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to under-perform the Hubei Yingtong. But the stock apears to be less risky and, when comparing its historical volatility, Fiberhome Telecommunication Technologies is 1.25 times less risky than Hubei Yingtong. The stock trades about -0.02 of its potential returns per unit of risk. The Hubei Yingtong Telecommunication is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,246 in Hubei Yingtong Telecommunication on August 30, 2024 and sell it today you would lose (3.00) from holding Hubei Yingtong Telecommunication or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Hubei Yingtong Telec |
Fiberhome Telecommunicatio and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Hubei Yingtong
The main advantage of trading using opposite Fiberhome Telecommunicatio and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.The idea behind Fiberhome Telecommunication Technologies and Hubei Yingtong Telecommunication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hubei Yingtong vs. Agricultural Bank of | Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. China Construction Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |