Correlation Between Sunwave Communications and King Strong
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By analyzing existing cross correlation between Sunwave Communications Co and King Strong New Material, you can compare the effects of market volatilities on Sunwave Communications and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and King Strong.
Diversification Opportunities for Sunwave Communications and King Strong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunwave and King is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and King Strong go up and down completely randomly.
Pair Corralation between Sunwave Communications and King Strong
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.58 times more return on investment than King Strong. However, Sunwave Communications is 1.58 times more volatile than King Strong New Material. It trades about 0.28 of its potential returns per unit of risk. King Strong New Material is currently generating about -0.08 per unit of risk. If you would invest 600.00 in Sunwave Communications Co on September 12, 2024 and sell it today you would earn a total of 214.00 from holding Sunwave Communications Co or generate 35.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. King Strong New Material
Performance |
| Timeline |
| Sunwave Communications |
| King Strong New |
Sunwave Communications and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and King Strong
The main advantage of trading using opposite Sunwave Communications and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong'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 |
| King Strong vs. Agricultural Bank of | King Strong vs. Industrial and Commercial | King Strong vs. Bank of China | King Strong vs. PetroChina Co Ltd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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