Correlation Between Sunwave Communications and Wintao Communications
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By analyzing existing cross correlation between Sunwave Communications Co and Wintao Communications Co, you can compare the effects of market volatilities on Sunwave Communications and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Wintao Communications.
Diversification Opportunities for Sunwave Communications and Wintao Communications
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunwave and Wintao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Wintao Communications go up and down completely randomly.
Pair Corralation between Sunwave Communications and Wintao Communications
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.16 times more return on investment than Wintao Communications. However, Sunwave Communications is 1.16 times more volatile than Wintao Communications Co. It trades about 0.29 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.16 per unit of risk. If you would invest 442.00 in Sunwave Communications Co on September 12, 2024 and sell it today you would earn a total of 453.00 from holding Sunwave Communications Co or generate 102.49% 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. Wintao Communications Co
Performance |
| Timeline |
| Sunwave Communications |
| Wintao Communications |
Sunwave Communications and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Wintao Communications
The main advantage of trading using opposite Sunwave Communications and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Sunwave Communications vs. Guangdong Wens Foodstuff | Sunwave Communications vs. HaiXin Foods Co | Sunwave Communications vs. Jiangsu Yueda Investment | Sunwave Communications vs. Eastroc Beverage Group |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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