Correlation Between China Aluminum and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between China Aluminum International and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on China Aluminum 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 China Aluminum with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and Fiberhome Telecommunicatio.
Diversification Opportunities for China Aluminum and Fiberhome Telecommunicatio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Fiberhome is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and China Aluminum 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 China Aluminum International 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 China Aluminum i.e., China Aluminum and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between China Aluminum and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon China Aluminum is expected to generate 9.42 times less return on investment than Fiberhome Telecommunicatio. But when comparing it to its historical volatility, China Aluminum International is 1.05 times less risky than Fiberhome Telecommunicatio. It trades about 0.0 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,381 in Fiberhome Telecommunication Technologies on August 29, 2024 and sell it today you would earn a total of 389.00 from holding Fiberhome Telecommunication Technologies or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| China Aluminum Inter |
| Fiberhome Telecommunicatio |
China Aluminum and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and Fiberhome Telecommunicatio
The main advantage of trading using opposite China Aluminum and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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.| China Aluminum vs. Ming Yang Smart | China Aluminum vs. 159681 | China Aluminum vs. 159005 | China Aluminum vs. Loctek Ergonomic Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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