Correlation Between Sunwave Communications and Chongqing Brewery
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By analyzing existing cross correlation between Sunwave Communications Co and Chongqing Brewery Co, you can compare the effects of market volatilities on Sunwave Communications and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and Chongqing Brewery.
Diversification Opportunities for Sunwave Communications and Chongqing Brewery
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunwave and Chongqing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Sunwave Communications and Chongqing Brewery
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.49 times more return on investment than Chongqing Brewery. However, Sunwave Communications is 1.49 times more volatile than Chongqing Brewery Co. It trades about 0.0 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.0 per unit of risk. If you would invest 768.00 in Sunwave Communications Co on September 4, 2024 and sell it today you would lose (85.00) from holding Sunwave Communications Co or give up 11.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwave Communications Co vs. Chongqing Brewery Co
Performance |
| Timeline |
| Sunwave Communications |
| Chongqing Brewery |
Sunwave Communications and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and Chongqing Brewery
The main advantage of trading using opposite Sunwave Communications and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Sunwave Communications vs. Anji Foodstuff Co | Sunwave Communications vs. HaiXin Foods Co | Sunwave Communications vs. JuneYao Dairy Co | Sunwave Communications vs. New Hope Dairy |
| Chongqing Brewery vs. Beijing Kaiwen Education | Chongqing Brewery vs. Anhui Huaren Health | Chongqing Brewery vs. Hangzhou Coco Healthcare | Chongqing Brewery vs. Xinhua Winshare Publishing |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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