Correlation Between Guangdong Wens and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Wens Foodstuff and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Fiberhome Telecommunicatio.
Diversification Opportunities for Guangdong Wens and Fiberhome Telecommunicatio
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Fiberhome is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio and Guangdong Wens 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 Guangdong Wens Foodstuff 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 Guangdong Wens i.e., Guangdong Wens and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangdong Wens and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Fiberhome Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 3.58 times less risky than Fiberhome Telecommunicatio. The stock trades about -0.47 of its potential returns per unit of risk. The Fiberhome Telecommunication Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,826 in Fiberhome Telecommunication Technologies on October 15, 2024 and sell it today you would lose (8.00) from holding Fiberhome Telecommunication Technologies or give up 0.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Wens Foodstuff vs. Fiberhome Telecommunication Te
Performance |
Timeline |
Guangdong Wens Foodstuff |
Fiberhome Telecommunicatio |
Guangdong Wens and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Wens and Fiberhome Telecommunicatio
The main advantage of trading using opposite Guangdong Wens and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.Guangdong Wens vs. Muyuan Foodstuff Co | Guangdong Wens vs. Shanghai Ziyan Foods | Guangdong Wens vs. Xiangyu Medical Co | Guangdong Wens vs. Winner Medical 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |