Correlation Between Sunwave Communications and China Petroleum
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By analyzing existing cross correlation between Sunwave Communications Co and China Petroleum Chemical, you can compare the effects of market volatilities on Sunwave Communications and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and China Petroleum.
Diversification Opportunities for Sunwave Communications and China Petroleum
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunwave and China is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and China Petroleum go up and down completely randomly.
Pair Corralation between Sunwave Communications and China Petroleum
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 2.19 times more return on investment than China Petroleum. However, Sunwave Communications is 2.19 times more volatile than China Petroleum Chemical. It trades about 0.03 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of risk. If you would invest 537.00 in Sunwave Communications Co on October 27, 2024 and sell it today you would earn a total of 135.00 from holding Sunwave Communications Co or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Sunwave Communications |
| China Petroleum Chemical |
Sunwave Communications and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and China Petroleum
The main advantage of trading using opposite Sunwave Communications and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Sunwave Communications vs. Bus Online Co | Sunwave Communications vs. Holitech Technology Co | Sunwave Communications vs. Gome Telecom Equipment | Sunwave Communications vs. Cultural Investment Holdings |
| China Petroleum vs. V V Food | China Petroleum vs. Heren Health Co | China Petroleum vs. Xiwang Foodstuffs Co | China Petroleum vs. Mingchen Health 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 Stocks Directory module to find actively traded stocks across global markets.
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