Correlation Between Sunwave Communications and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Sunwave Communications Co and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Sunwave Communications and Shijiazhuang Tonhe 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 Sunwave Communications with a short position of Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Shijiazhuang Tonhe.
Diversification Opportunities for Sunwave Communications and Shijiazhuang Tonhe
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunwave and Shijiazhuang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe and Sunwave Communications 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 Sunwave Communications Co are associated (or correlated) with Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Sunwave Communications and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.31 times more return on investment than Shijiazhuang Tonhe. However, Sunwave Communications is 1.31 times more volatile than Shijiazhuang Tonhe Electronics. It trades about 0.19 of its potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about 0.12 per unit of risk. If you would invest 468.00 in Sunwave Communications Co on September 24, 2024 and sell it today you would earn a total of 312.00 from holding Sunwave Communications Co or generate 66.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunwave Communications Co vs. Shijiazhuang Tonhe Electronics
Performance |
Timeline |
Sunwave Communications |
Shijiazhuang Tonhe |
Sunwave Communications and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunwave Communications and Shijiazhuang Tonhe
The main advantage of trading using opposite Sunwave Communications and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.Sunwave Communications vs. Industrial and Commercial | Sunwave Communications vs. Agricultural Bank of | Sunwave Communications vs. China Construction Bank | Sunwave Communications vs. Bank of China |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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