Correlation Between Sunwave Communications and CareRay Digital
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By analyzing existing cross correlation between Sunwave Communications Co and CareRay Digital Medical, you can compare the effects of market volatilities on Sunwave Communications and CareRay Digital 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 CareRay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwave Communications and CareRay Digital.
Diversification Opportunities for Sunwave Communications and CareRay Digital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwave and CareRay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sunwave Communications Co and CareRay Digital Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CareRay Digital Medical 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 CareRay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CareRay Digital Medical has no effect on the direction of Sunwave Communications i.e., Sunwave Communications and CareRay Digital go up and down completely randomly.
Pair Corralation between Sunwave Communications and CareRay Digital
Assuming the 90 days trading horizon Sunwave Communications Co is expected to generate 1.07 times more return on investment than CareRay Digital. However, Sunwave Communications is 1.07 times more volatile than CareRay Digital Medical. It trades about 0.05 of its potential returns per unit of risk. CareRay Digital Medical is currently generating about 0.01 per unit of risk. If you would invest 444.00 in Sunwave Communications Co on September 12, 2024 and sell it today you would earn a total of 370.00 from holding Sunwave Communications Co or generate 83.33% 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. CareRay Digital Medical
Performance |
| Timeline |
| Sunwave Communications |
| CareRay Digital Medical |
Sunwave Communications and CareRay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwave Communications and CareRay Digital
The main advantage of trading using opposite Sunwave Communications and CareRay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwave Communications position performs unexpectedly, CareRay Digital 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 CareRay Digital will offset losses from the drop in CareRay Digital'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 |
| CareRay Digital vs. Sunwave Communications Co | CareRay Digital vs. Harbin Hatou Investment | CareRay Digital vs. Xiandai Investment Co | CareRay Digital vs. Tongyu Communication |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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