Correlation Between Sunwave Communications and Elite Color
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By analyzing existing cross correlation between Sunwave Communications Co and Elite Color Environmental, you can compare the effects of market volatilities on Sunwave Communications and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Elite Color.
Diversification Opportunities for Sunwave Communications and Elite Color
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwave and Elite is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Elite Color go up and down completely randomly.
Pair Corralation between Sunwave Communications and Elite Color
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.36 times more return on investment than Elite Color. However, Sunwave Communications is 1.36 times more volatile than Elite Color Environmental. It trades about 0.18 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.14 per unit of risk. If you would invest 547.00 in Sunwave Communications Co on September 1, 2024 and sell it today you would earn a total of 93.00 from holding Sunwave Communications Co or generate 17.0% 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. Elite Color Environmental
Performance |
| Timeline |
| Sunwave Communications |
| Elite Color Environmental |
Sunwave Communications and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Elite Color
The main advantage of trading using opposite Sunwave Communications and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Sunwave Communications vs. Northern United Publishing | Sunwave Communications vs. RoadMain T Co | Sunwave Communications vs. Broadex Technologies Co | Sunwave Communications vs. Beijing Kaiwen Education |
| Elite Color vs. Zijin Mining Group | Elite Color vs. Baoshan Iron Steel | Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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