Correlation Between Sunwave Communications and Xiangyang Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sunwave Communications Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Sunwave Communications and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Xiangyang Automobile.
Diversification Opportunities for Sunwave Communications and Xiangyang Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunwave and Xiangyang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Sunwave Communications and Xiangyang Automobile
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.19 times more return on investment than Xiangyang Automobile. However, Sunwave Communications is 1.19 times more volatile than Xiangyang Automobile Bearing. It trades about 0.2 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.01 per unit of risk. If you would invest 568.00 in Sunwave Communications Co on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Sunwave Communications Co or generate 19.19% 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. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Sunwave Communications |
| Xiangyang Automobile |
Sunwave Communications and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Xiangyang Automobile
The main advantage of trading using opposite Sunwave Communications and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.The idea behind Sunwave Communications Co and Xiangyang Automobile Bearing 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.
| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |