Correlation Between Beijing Bewinner and Sunwave Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Bewinner Communications and Sunwave Communications Co, you can compare the effects of market volatilities on Beijing Bewinner and Sunwave 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 Beijing Bewinner with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and Sunwave Communications.
Diversification Opportunities for Beijing Bewinner and Sunwave Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Sunwave is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Beijing Bewinner 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 Beijing Bewinner Communications are associated (or correlated) with Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Beijing Bewinner i.e., Beijing Bewinner and Sunwave Communications go up and down completely randomly.
Pair Corralation between Beijing Bewinner and Sunwave Communications
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 0.91 times more return on investment than Sunwave Communications. However, Beijing Bewinner Communications is 1.1 times less risky than Sunwave Communications. It trades about 0.06 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.03 per unit of risk. If you would invest 504.00 in Beijing Bewinner Communications on November 7, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Bewinner Communications or generate 31.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. Sunwave Communications Co
Performance |
| Timeline |
| Beijing Bewinner Com |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Sunwave Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Beijing Bewinner and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and Sunwave Communications
The main advantage of trading using opposite Beijing Bewinner and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner position performs unexpectedly, Sunwave 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.The idea behind Beijing Bewinner Communications and Sunwave Communications 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.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |