Correlation Between Fiberhome Telecommunicatio and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Gan Yuan Foods, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Gan Yuan.
Diversification Opportunities for Fiberhome Telecommunicatio and Gan Yuan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fiberhome and Gan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Gan Yuan go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Gan Yuan
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 1.1 times more return on investment than Gan Yuan. However, Fiberhome Telecommunicatio is 1.1 times more volatile than Gan Yuan Foods. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.03 per unit of risk. If you would invest 1,336 in Fiberhome Telecommunication Technologies on September 26, 2024 and sell it today you would earn a total of 572.00 from holding Fiberhome Telecommunication Technologies or generate 42.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Gan Yuan Foods
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Gan Yuan Foods |
Fiberhome Telecommunicatio and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Gan Yuan
The main advantage of trading using opposite Fiberhome Telecommunicatio and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.The idea behind Fiberhome Telecommunication Technologies and Gan Yuan Foods 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.
| Gan Yuan vs. Ming Yang Smart | Gan Yuan vs. 159681 | Gan Yuan vs. 159005 | Gan Yuan vs. Loctek Ergonomic Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |