Correlation Between Sunwave Communications and Guangdong Qunxing
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By analyzing existing cross correlation between Sunwave Communications Co and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Sunwave Communications and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Guangdong Qunxing.
Diversification Opportunities for Sunwave Communications and Guangdong Qunxing
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwave and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Sunwave Communications and Guangdong Qunxing
Assuming the 90 days trading horizon Sunwave Communications is expected to generate 1.0 times less return on investment than Guangdong Qunxing. In addition to that, Sunwave Communications is 1.38 times more volatile than Guangdong Qunxing Toys. It trades about 0.28 of its total potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.39 per unit of volatility. If you would invest 612.00 in Guangdong Qunxing Toys on September 12, 2024 and sell it today you would earn a total of 231.00 from holding Guangdong Qunxing Toys or generate 37.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Sunwave Communications |
| Guangdong Qunxing Toys |
Sunwave Communications and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Guangdong Qunxing
The main advantage of trading using opposite Sunwave Communications and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing'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 |
| Guangdong Qunxing vs. Lutian Machinery Co | Guangdong Qunxing vs. PetroChina Co Ltd | Guangdong Qunxing vs. Bank of China | Guangdong Qunxing vs. Gansu Jiu Steel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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