Correlation Between Fiberhome Telecommunicatio and Orinko Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Orinko Advanced Plastics, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Orinko Advanced 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 Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Orinko Advanced.
Diversification Opportunities for Fiberhome Telecommunicatio and Orinko Advanced
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fiberhome and Orinko is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Orinko Advanced Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orinko Advanced Plastics 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 Orinko Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orinko Advanced Plastics has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Orinko Advanced go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Orinko Advanced
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 1.03 times more return on investment than Orinko Advanced. However, Fiberhome Telecommunicatio is 1.03 times more volatile than Orinko Advanced Plastics. It trades about 0.04 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.02 per unit of risk. If you would invest 1,392 in Fiberhome Telecommunication Technologies on October 16, 2024 and sell it today you would earn a total of 520.00 from holding Fiberhome Telecommunication Technologies or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiberhome Telecommunication Te vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Fiberhome Telecommunicatio |
| Orinko Advanced Plastics |
Fiberhome Telecommunicatio and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiberhome Telecommunicatio and Orinko Advanced
The main advantage of trading using opposite Fiberhome Telecommunicatio and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Orinko Advanced 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 Orinko Advanced will offset losses from the drop in Orinko Advanced's long position.The idea behind Fiberhome Telecommunication Technologies and Orinko Advanced Plastics 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.
| Orinko Advanced vs. Anji Foodstuff Co | Orinko Advanced vs. Shanghai Ziyan Foods | Orinko Advanced vs. GigaDevice SemiconductorBeiji | Orinko Advanced vs. Ingenic Semiconductor |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |