Correlation Between Wuxi Dk and SUNSEA Telecommunicatio

Can any of the company-specific risk be diversified away by investing in both Wuxi Dk and SUNSEA Telecommunicatio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wuxi Dk and SUNSEA Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wuxi Dk Electronic and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Wuxi Dk and SUNSEA 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 Wuxi Dk with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Dk and SUNSEA Telecommunicatio.

Diversification Opportunities for Wuxi Dk and SUNSEA Telecommunicatio

0.0

Correlation Coefficient

Wuxi Dk  SUNSEA Telecommunicatio

Pay attention - limited upside

The 3 months correlation between Wuxi and SUNSEA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Dk Electronic and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Wuxi Dk 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 Wuxi Dk Electronic are associated (or correlated) with SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Wuxi Dk i.e., Wuxi Dk and SUNSEA Telecommunicatio go up and down completely randomly.

Pair Corralation between Wuxi Dk and SUNSEA Telecommunicatio

If you would invest  846.00  in SUNSEA Telecommunications Co on October 25, 2024 and sell it today you would earn a total of  112.00  from holding SUNSEA Telecommunications Co or generate 13.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Wuxi Dk Electronic  vs.  SUNSEA Telecommunications Co

Wuxi Dk Electronic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wuxi Dk Electronic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Wuxi Dk is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SUNSEA Telecommunicatio

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SUNSEA Telecommunications Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SUNSEA Telecommunicatio sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wuxi Dk and SUNSEA Telecommunicatio

The main advantage of trading using opposite Wuxi Dk and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Dk position performs unexpectedly, SUNSEA 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.

The idea behind Wuxi Dk Electronic and SUNSEA Telecommunications Co 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.