Correlation Between Sunwave Communications and Kuang Chi
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By analyzing existing cross correlation between Sunwave Communications Co and Kuang Chi Technologies, you can compare the effects of market volatilities on Sunwave Communications and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Kuang Chi.
Diversification Opportunities for Sunwave Communications and Kuang Chi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunwave and Kuang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Kuang Chi go up and down completely randomly.
Pair Corralation between Sunwave Communications and Kuang Chi
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.6 times more return on investment than Kuang Chi. However, Sunwave Communications is 1.6 times more volatile than Kuang Chi Technologies. It trades about 0.48 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.13 per unit of risk. If you would invest 614.00 in Sunwave Communications Co on September 15, 2024 and sell it today you would earn a total of 470.00 from holding Sunwave Communications Co or generate 76.55% 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. Kuang Chi Technologies
Performance |
| Timeline |
| Sunwave Communications |
| Kuang Chi Technologies |
Sunwave Communications and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Kuang Chi
The main advantage of trading using opposite Sunwave Communications and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Sunwave Communications vs. Industrial and Commercial | Sunwave Communications vs. China Construction Bank | Sunwave Communications vs. Bank of China | Sunwave Communications vs. Agricultural Bank of |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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