Correlation Between Caihong Display and Fibocom Wireless
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By analyzing existing cross correlation between Caihong Display Devices and Fibocom Wireless, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Fibocom Wireless.
Diversification Opportunities for Caihong Display and Fibocom Wireless
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caihong and Fibocom is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Caihong Display and Fibocom Wireless
Assuming the 90 days trading horizon Caihong Display is expected to generate 9.66 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Caihong Display Devices is 2.11 times less risky than Fibocom Wireless. It trades about 0.06 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,133 in Fibocom Wireless on October 29, 2024 and sell it today you would earn a total of 902.00 from holding Fibocom Wireless or generate 42.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Fibocom Wireless
Performance |
| Timeline |
| Caihong Display Devices |
| Fibocom Wireless |
Caihong Display and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Fibocom Wireless
The main advantage of trading using opposite Caihong Display and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Sinomach Automobile Co | Caihong Display vs. Shanghai V Test Semiconductor | Caihong Display vs. Xiangyang Automobile Bearing | Caihong Display vs. Ningbo Fangzheng Automobile |
| Fibocom Wireless vs. Shenzhen AV Display Co | Fibocom Wireless vs. Sanxiang Advanced Materials | Fibocom Wireless vs. Jiangsu Financial Leasing | Fibocom Wireless vs. GRIPM Advanced Materials |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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