Correlation Between Fiberhome Telecommunicatio and Fushun Special
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Fushun Special Steel, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Fushun Special 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 Fushun Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Fushun Special.
Diversification Opportunities for Fiberhome Telecommunicatio and Fushun Special
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiberhome and Fushun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Fushun Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fushun Special Steel 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 Fushun Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fushun Special Steel has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Fushun Special go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Fushun Special
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 1.11 times more return on investment than Fushun Special. However, Fiberhome Telecommunicatio is 1.11 times more volatile than Fushun Special Steel. It trades about -0.04 of its potential returns per unit of risk. Fushun Special Steel is currently generating about -0.11 per unit of risk. If you would invest 1,853 in Fiberhome Telecommunication Technologies on August 30, 2024 and sell it today you would lose (60.00) from holding Fiberhome Telecommunication Technologies or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Fushun Special Steel
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Fushun Special Steel |
Fiberhome Telecommunicatio and Fushun Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Fushun Special
The main advantage of trading using opposite Fiberhome Telecommunicatio and Fushun Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Fushun Special 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 Fushun Special will offset losses from the drop in Fushun Special's long position.The idea behind Fiberhome Telecommunication Technologies and Fushun Special Steel 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.
| Fushun Special vs. Wanhua Chemical Group | Fushun Special vs. Baoshan Iron Steel | Fushun Special vs. Rongsheng Petrochemical Co | Fushun Special vs. Hoshine Silicon Ind |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |