Correlation Between Fiberhome Telecommunicatio and Bank of Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Bank of Communications, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Bank of Communications.
Diversification Opportunities for Fiberhome Telecommunicatio and Bank of Communications
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fiberhome and Bank is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Bank of Communications go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Bank of Communications
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 2.84 times more return on investment than Bank of Communications. However, Fiberhome Telecommunicatio is 2.84 times more volatile than Bank of Communications. It trades about 0.04 of its potential returns per unit of risk. Bank of Communications is currently generating about -0.3 per unit of risk. If you would invest 1,908 in Fiberhome Telecommunication Technologies on October 25, 2024 and sell it today you would earn a total of 27.00 from holding Fiberhome Telecommunication Technologies or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Bank of Communications
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Bank of Communications |
Fiberhome Telecommunicatio and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Bank of Communications
The main advantage of trading using opposite Fiberhome Telecommunicatio and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Fiberhome Telecommunicatio vs. Kweichow Moutai Co | Fiberhome Telecommunicatio vs. NAURA Technology Group | Fiberhome Telecommunicatio vs. APT Medical | Fiberhome Telecommunicatio vs. BYD Co Ltd |
| Bank of Communications vs. Bank of China | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. China Mobile Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world |