Correlation Between Sunwave Communications and Aerospace Hi-Tech
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By analyzing existing cross correlation between Sunwave Communications Co and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Sunwave Communications and Aerospace Hi-Tech 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 Aerospace Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Aerospace Hi-Tech.
Diversification Opportunities for Sunwave Communications and Aerospace Hi-Tech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunwave and Aerospace is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Aerospace Hi-Tech go up and down completely randomly.
Pair Corralation between Sunwave Communications and Aerospace Hi-Tech
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 2.53 times more return on investment than Aerospace Hi-Tech. However, Sunwave Communications is 2.53 times more volatile than Aerospace Hi Tech Holding. It trades about 0.31 of its potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about 0.4 per unit of risk. If you would invest 640.00 in Sunwave Communications Co on November 28, 2024 and sell it today you would earn a total of 134.00 from holding Sunwave Communications Co or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Aerospace Hi Tech Holding
Performance |
| Timeline |
| Sunwave Communications |
| Aerospace Hi Tech |
Sunwave Communications and Aerospace Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Aerospace Hi-Tech
The main advantage of trading using opposite Sunwave Communications and Aerospace Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Aerospace Hi-Tech 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 Aerospace Hi-Tech will offset losses from the drop in Aerospace Hi-Tech's long position.| Sunwave Communications vs. PetroChina Co Ltd | Sunwave Communications vs. Industrial and Commercial | Sunwave Communications vs. China Petroleum Chemical | Sunwave Communications vs. China Construction Bank |
| Aerospace Hi-Tech vs. New China Life | Aerospace Hi-Tech vs. Ming Yang Smart | Aerospace Hi-Tech vs. 159681 | Aerospace Hi-Tech vs. 159005 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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