Correlation Between Sunwave Communications and JiShi Media
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By analyzing existing cross correlation between Sunwave Communications Co and JiShi Media Co, you can compare the effects of market volatilities on Sunwave Communications and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and JiShi Media.
Diversification Opportunities for Sunwave Communications and JiShi Media
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwave and JiShi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and JiShi Media go up and down completely randomly.
Pair Corralation between Sunwave Communications and JiShi Media
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.16 times more return on investment than JiShi Media. However, Sunwave Communications is 1.16 times more volatile than JiShi Media Co. It trades about 0.2 of its potential returns per unit of risk. JiShi Media Co is currently generating about -0.12 per unit of risk. If you would invest 568.00 in Sunwave Communications Co on August 29, 2024 and sell it today you would earn a total of 109.00 from holding Sunwave Communications Co or generate 19.19% 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. JiShi Media Co
Performance |
| Timeline |
| Sunwave Communications |
| JiShi Media |
Sunwave Communications and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and JiShi Media
The main advantage of trading using opposite Sunwave Communications and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.The idea behind Sunwave Communications Co and JiShi Media Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| JiShi Media vs. Sunwave Communications Co | JiShi Media vs. Zhangjiagang Freetrade Science | JiShi Media vs. China Nonferrous Metal | JiShi Media vs. Haima Automobile Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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