Correlation Between Sunwave Communications and Unigroup Guoxin
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By analyzing existing cross correlation between Sunwave Communications Co and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Sunwave Communications and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Unigroup Guoxin.
Diversification Opportunities for Sunwave Communications and Unigroup Guoxin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunwave and Unigroup is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Sunwave Communications and Unigroup Guoxin
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.23 times more return on investment than Unigroup Guoxin. However, Sunwave Communications is 1.23 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.05 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.04 per unit of risk. If you would invest 444.00 in Sunwave Communications Co on September 12, 2024 and sell it today you would earn a total of 370.00 from holding Sunwave Communications Co or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Sunwave Communications |
| Unigroup Guoxin Micr |
Sunwave Communications and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Unigroup Guoxin
The main advantage of trading using opposite Sunwave Communications and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Sunwave Communications vs. Guangdong Qunxing Toys | Sunwave Communications vs. Sinocat Environmental Technology | Sunwave Communications vs. Juneyao Airlines | Sunwave Communications vs. Hainan Airlines Co |
| Unigroup Guoxin vs. Gansu Jiu Steel | Unigroup Guoxin vs. Shandong Mining Machinery | Unigroup Guoxin vs. Aba Chemicals Corp | Unigroup Guoxin vs. BlueFocus Communication Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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