Correlation Between SUNSEA Telecommunicatio and Orient Sec
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Orient Sec Co, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Orient Sec 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 SUNSEA Telecommunicatio with a short position of Orient Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Orient Sec.
Diversification Opportunities for SUNSEA Telecommunicatio and Orient Sec
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUNSEA and Orient is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Orient Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Sec and SUNSEA 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 SUNSEA Telecommunications Co are associated (or correlated) with Orient Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Sec has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Orient Sec go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Orient Sec
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 1.71 times more return on investment than Orient Sec. However, SUNSEA Telecommunicatio is 1.71 times more volatile than Orient Sec Co. It trades about 0.07 of its potential returns per unit of risk. Orient Sec Co is currently generating about 0.11 per unit of risk. If you would invest 682.00 in SUNSEA Telecommunications Co on September 25, 2024 and sell it today you would earn a total of 204.00 from holding SUNSEA Telecommunications Co or generate 29.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SUNSEA Telecommunications Co vs. Orient Sec Co
Performance |
Timeline |
SUNSEA Telecommunicatio |
Orient Sec |
SUNSEA Telecommunicatio and Orient Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SUNSEA Telecommunicatio and Orient Sec
The main advantage of trading using opposite SUNSEA Telecommunicatio and Orient Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Orient Sec 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 Orient Sec will offset losses from the drop in Orient Sec's long position.SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. Agricultural Bank of | SUNSEA Telecommunicatio vs. China Construction Bank | SUNSEA Telecommunicatio 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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