Correlation Between Gem Year and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Gem Year Industrial Co and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Fiberhome Telecommunicatio.
Diversification Opportunities for Gem Year and Fiberhome Telecommunicatio
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Fiberhome is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Gem Year and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.03 times more return on investment than Fiberhome Telecommunicatio. However, Gem Year is 1.03 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.1 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.13 per unit of risk. If you would invest 451.00 in Gem Year Industrial Co on September 15, 2024 and sell it today you would earn a total of 17.00 from holding Gem Year Industrial Co or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Gem Year Industrial |
| Fiberhome Telecommunicatio |
Gem Year and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Fiberhome Telecommunicatio
The main advantage of trading using opposite Gem Year and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Agricultural Bank of | Gem Year vs. Industrial and Commercial | Gem Year vs. Bank of China | Gem Year vs. PetroChina Co Ltd |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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