Correlation Between Shandong Sinoglory and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Shandong Sinoglory Health and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Fiberhome Telecommunicatio.
Diversification Opportunities for Shandong Sinoglory and Fiberhome Telecommunicatio
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shandong and Fiberhome is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 0.5 times more return on investment than Fiberhome Telecommunicatio. However, Shandong Sinoglory Health is 2.0 times less risky than Fiberhome Telecommunicatio. It trades about 0.12 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.02 per unit of risk. If you would invest 1,151 in Shandong Sinoglory Health on November 1, 2024 and sell it today you would earn a total of 47.00 from holding Shandong Sinoglory Health or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Fiberhome Telecommunicatio |
Shandong Sinoglory and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Fiberhome Telecommunicatio
The main advantage of trading using opposite Shandong Sinoglory and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. Kweichow Moutai Co | Shandong Sinoglory vs. Contemporary Amperex Technology | Shandong Sinoglory vs. G bits Network Technology | Shandong Sinoglory vs. Beijing Roborock 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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