Correlation Between Zhongzhu Medical and Fibocom Wireless
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Fibocom Wireless, you can compare the effects of market volatilities on Zhongzhu Medical and Fibocom Wireless 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 Zhongzhu Medical with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Fibocom Wireless.
Diversification Opportunities for Zhongzhu Medical and Fibocom Wireless
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongzhu and Fibocom is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Zhongzhu Medical 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 Zhongzhu Medical Holdings are associated (or correlated) with Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Fibocom Wireless
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 3.43 times less risky than Fibocom Wireless. The stock trades about -0.07 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,015 in Fibocom Wireless on November 1, 2024 and sell it today you would earn a total of 997.00 from holding Fibocom Wireless or generate 49.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Fibocom Wireless
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Fibocom Wireless |
Zhongzhu Medical and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Fibocom Wireless
The main advantage of trading using opposite Zhongzhu Medical and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Zhongzhu Medical vs. Cloud Live Technology | Zhongzhu Medical vs. Nanjing Putian Telecommunications | Zhongzhu Medical vs. Shenzhen Coship Electronics | Zhongzhu Medical vs. Shenzhen Hifuture Electric |
| Fibocom Wireless vs. Bus Online Co | Fibocom Wireless vs. Holitech Technology Co | Fibocom Wireless vs. Gome Telecom Equipment | Fibocom Wireless vs. Cultural Investment Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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