Correlation Between Guangzhou Zhujiang and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Fiberhome Telecommunicatio.
Diversification Opportunities for Guangzhou Zhujiang and Fiberhome Telecommunicatio
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Fiberhome is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.65 times more return on investment than Fiberhome Telecommunicatio. However, Guangzhou Zhujiang Brewery is 1.53 times less risky than Fiberhome Telecommunicatio. It trades about 0.03 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about -0.01 per unit of risk. If you would invest 854.00 in Guangzhou Zhujiang Brewery on October 5, 2024 and sell it today you would earn a total of 109.00 from holding Guangzhou Zhujiang Brewery or generate 12.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Fiberhome Telecommunication Te
Performance |
Timeline |
Guangzhou Zhujiang |
Fiberhome Telecommunicatio |
Guangzhou Zhujiang and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and Fiberhome Telecommunicatio
The main advantage of trading using opposite Guangzhou Zhujiang and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.Guangzhou Zhujiang vs. BTG Hotels Group | Guangzhou Zhujiang vs. GRINM Semiconductor Materials | Guangzhou Zhujiang vs. GigaDevice SemiconductorBeiji | Guangzhou Zhujiang vs. Huatian Hotel Group |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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