Correlation Between Fiberhome Telecommunicatio and Zhuhai Comleader
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By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Zhuhai Comleader Information, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Zhuhai Comleader.
Diversification Opportunities for Fiberhome Telecommunicatio and Zhuhai Comleader
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fiberhome and Zhuhai is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Zhuhai Comleader
Assuming the 90 days trading horizon Fiberhome Telecommunicatio is expected to generate 1.98 times less return on investment than Zhuhai Comleader. But when comparing it to its historical volatility, Fiberhome Telecommunication Technologies is 1.57 times less risky than Zhuhai Comleader. It trades about 0.17 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,158 in Zhuhai Comleader Information on September 4, 2024 and sell it today you would earn a total of 777.00 from holding Zhuhai Comleader Information or generate 67.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Zhuhai Comleader Information
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Zhuhai Comleader Inf |
Fiberhome Telecommunicatio and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Zhuhai Comleader
The main advantage of trading using opposite Fiberhome Telecommunicatio and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader's long position.The idea behind Fiberhome Telecommunication Technologies and Zhuhai Comleader Information 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.
| Zhuhai Comleader vs. Fiberhome Telecommunication Technologies | Zhuhai Comleader vs. Tongyu Communication | Zhuhai Comleader vs. Western Metal Materials | Zhuhai Comleader vs. CITIC Metal Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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