Correlation Between Hainan Mining and Fibocom Wireless
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By analyzing existing cross correlation between Hainan Mining Co and Fibocom Wireless, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Fibocom Wireless.
Diversification Opportunities for Hainan Mining and Fibocom Wireless
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hainan and Fibocom is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Hainan Mining 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 Hainan Mining Co 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 Hainan Mining i.e., Hainan Mining and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Hainan Mining and Fibocom Wireless
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.6 times less risky than Fibocom Wireless. The stock trades about -0.01 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,705 in Fibocom Wireless on October 11, 2024 and sell it today you would earn a total of 173.00 from holding Fibocom Wireless or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Fibocom Wireless
Performance |
| Timeline |
| Hainan Mining |
| Fibocom Wireless |
Hainan Mining and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Fibocom Wireless
The main advantage of trading using opposite Hainan Mining and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Sinocat Environmental Technology | Hainan Mining vs. Sanbo Hospital Management | Hainan Mining vs. Changjiang Jinggong Steel | Hainan Mining vs. Eit Environmental Development |
| Fibocom Wireless vs. Threes Company Media | Fibocom Wireless vs. Western Mining Co | Fibocom Wireless vs. Shengda Mining Co | Fibocom Wireless vs. Hainan Mining Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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