Correlation Between Fiberhome Telecommunicatio and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fiberhome Telecommunication Technologies and Metro Investment Development, you can compare the effects of market volatilities on Fiberhome Telecommunicatio and Metro Investment 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 Fiberhome Telecommunicatio with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiberhome Telecommunicatio and Metro Investment.
Diversification Opportunities for Fiberhome Telecommunicatio and Metro Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fiberhome and Metro is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fiberhome Telecommunication Te and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev and Fiberhome Telecommunicatio 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 Fiberhome Telecommunication Technologies are associated (or correlated) with Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Fiberhome Telecommunicatio i.e., Fiberhome Telecommunicatio and Metro Investment go up and down completely randomly.
Pair Corralation between Fiberhome Telecommunicatio and Metro Investment
Assuming the 90 days trading horizon Fiberhome Telecommunication Technologies is expected to generate 0.86 times more return on investment than Metro Investment. However, Fiberhome Telecommunication Technologies is 1.16 times less risky than Metro Investment. It trades about 0.06 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.07 per unit of risk. If you would invest 1,816 in Fiberhome Telecommunication Technologies on September 25, 2024 and sell it today you would earn a total of 86.00 from holding Fiberhome Telecommunication Technologies or generate 4.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fiberhome Telecommunication Te vs. Metro Investment Development
Performance |
Timeline |
Fiberhome Telecommunicatio |
Metro Investment Dev |
Fiberhome Telecommunicatio and Metro Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fiberhome Telecommunicatio and Metro Investment
The main advantage of trading using opposite Fiberhome Telecommunicatio and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiberhome Telecommunicatio position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.The idea behind Fiberhome Telecommunication Technologies and Metro Investment Development pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Metro Investment vs. Jilin Jlu Communication | Metro Investment vs. Fiberhome Telecommunication Technologies | Metro Investment vs. Zhongtong Guomai Communication | Metro Investment vs. Air China Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |