Correlation Between Yunnan Jianzhijia and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Fiberhome Telecommunicatio.
Diversification Opportunities for Yunnan Jianzhijia and Fiberhome Telecommunicatio
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Fiberhome is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Fiberhome Telecommunicatio. In addition to that, Yunnan Jianzhijia is 1.07 times more volatile than Fiberhome Telecommunication Technologies. It trades about -0.04 of its total potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.04 per unit of volatility. If you would invest 1,362 in Fiberhome Telecommunication Technologies on September 3, 2024 and sell it today you would earn a total of 461.00 from holding Fiberhome Telecommunication Technologies or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Fiberhome Telecommunicatio |
Yunnan Jianzhijia and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Fiberhome Telecommunicatio
The main advantage of trading using opposite Yunnan Jianzhijia and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Beijing Wantai Biological | Yunnan Jianzhijia vs. Aluminum Corp of | Yunnan Jianzhijia vs. COL Digital Publishing | Yunnan Jianzhijia vs. Shaanxi Meineng Clean |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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