Correlation Between China Securities and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between China Securities 800 and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and SUNSEA Telecommunicatio.
Diversification Opportunities for China Securities and SUNSEA Telecommunicatio
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and SUNSEA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between China Securities and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the SUNSEA Telecommunicatio. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 3.63 times less risky than SUNSEA Telecommunicatio. The index trades about -0.01 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 853.00 in SUNSEA Telecommunications Co on January 26, 2025 and sell it today you would earn a total of 7.00 from holding SUNSEA Telecommunications Co or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Securities 800 vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
China Securities and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
SUNSEA Telecommunications Co
Pair trading matchups for SUNSEA Telecommunicatio
Pair Trading with China Securities and SUNSEA Telecommunicatio
The main advantage of trading using opposite China Securities and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Chengtun Mining Group | China Securities vs. China National Software | China Securities vs. Guangzhou Haozhi Industrial | China Securities vs. China Minmetals Rare |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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