Correlation Between Fiberhome Telecommunicatio and JCET Group
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By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and JCET Group Co, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and JCET Group.
Diversification Opportunities for Fiberhome Telecommunicatio and JCET Group
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fiberhome and JCET is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and JCET Group go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and JCET Group
Assuming the 90 days trading horizon Fiberhome Telecommunicatio is expected to generate 1.25 times less return on investment than JCET Group. But when comparing it to its historical volatility, Fiberhome Telecommunication Technologies is 1.22 times less risky than JCET Group. It trades about 0.07 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,137 in JCET Group Co on September 27, 2024 and sell it today you would earn a total of 756.00 from holding JCET Group Co or generate 24.1% 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. JCET Group Co
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| JCET Group |
Fiberhome Telecommunicatio and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and JCET Group
The main advantage of trading using opposite Fiberhome Telecommunicatio and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group's long position.The idea behind Fiberhome Telecommunication Technologies and JCET Group Co 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.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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