Correlation Between Shanghai Zhangjiang and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Shanghai Zhangjiang and Fiberhome Telecommunicatio 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 Shanghai Zhangjiang with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Fiberhome Telecommunicatio.
Diversification Opportunities for Shanghai Zhangjiang and Fiberhome Telecommunicatio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Fiberhome is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi Tech and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Shanghai Zhangjiang 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 Shanghai Zhangjiang Hi Tech are associated (or correlated) with Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to generate 1.83 times more return on investment than Fiberhome Telecommunicatio. However, Shanghai Zhangjiang is 1.83 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.07 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.04 per unit of risk. If you would invest 2,657 in Shanghai Zhangjiang Hi Tech on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Shanghai Zhangjiang Hi Tech or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Fiberhome Telecommunicatio |
Shanghai Zhangjiang and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Fiberhome Telecommunicatio
The main advantage of trading using opposite Shanghai Zhangjiang and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 Positions Ratings module to 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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |