Correlation Between Jiangsu GDK and Fibocom Wireless
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Fibocom Wireless, you can compare the effects of market volatilities on Jiangsu GDK 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 Jiangsu GDK with a short position of Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Fibocom Wireless.
Diversification Opportunities for Jiangsu GDK and Fibocom Wireless
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and Fibocom is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless and Jiangsu GDK 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 Jiangsu GDK Biotechnology 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 Jiangsu GDK i.e., Jiangsu GDK and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Fibocom Wireless
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Fibocom Wireless. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 2.18 times less risky than Fibocom Wireless. The stock trades about -0.3 of its potential returns per unit of risk. The Fibocom Wireless is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,709 in Fibocom Wireless on November 3, 2024 and sell it today you would earn a total of 1,303 from holding Fibocom Wireless or generate 76.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Fibocom Wireless
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Fibocom Wireless |
Jiangsu GDK and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Fibocom Wireless
The main advantage of trading using opposite Jiangsu GDK and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK 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.| Jiangsu GDK vs. Kweichow Moutai Co | Jiangsu GDK vs. G bits Network Technology | Jiangsu GDK vs. Anhui Gujing Distillery | Jiangsu GDK vs. Anhui Gujing Distillery |
| Fibocom Wireless vs. Sino Medical Sciences | Fibocom Wireless vs. Allgens Medical Technology | Fibocom Wireless vs. Eastroc Beverage Group | Fibocom Wireless vs. Tsingtao Brewery 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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