Correlation Between Sunwave Communications and Changchun High
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By analyzing existing cross correlation between Sunwave Communications Co and Changchun High New, you can compare the effects of market volatilities on Sunwave Communications and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Changchun High.
Diversification Opportunities for Sunwave Communications and Changchun High
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunwave and Changchun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Changchun High go up and down completely randomly.
Pair Corralation between Sunwave Communications and Changchun High
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.43 times more return on investment than Changchun High. However, Sunwave Communications is 1.43 times more volatile than Changchun High New. It trades about 0.02 of its potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of risk. If you would invest 614.00 in Sunwave Communications Co on August 31, 2024 and sell it today you would earn a total of 58.00 from holding Sunwave Communications Co or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Changchun High New
Performance |
| Timeline |
| Sunwave Communications |
| Changchun High New |
Sunwave Communications and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Changchun High
The main advantage of trading using opposite Sunwave Communications and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Sunwave Communications vs. Kweichow Moutai Co | Sunwave Communications vs. NAURA Technology Group | Sunwave Communications vs. APT Medical | Sunwave Communications vs. Contemporary Amperex Technology |
| Changchun High vs. Cicc Fund Management | Changchun High vs. Eastroc Beverage Group | Changchun High vs. Orinko Advanced Plastics | Changchun High vs. Huaxia Fund Management |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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