Correlation Between GRG Banking and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between GRG Banking Equipment and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on GRG Banking and SUNSEA Telecommunicatio 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 GRG Banking with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and SUNSEA Telecommunicatio.
Diversification Opportunities for GRG Banking and SUNSEA Telecommunicatio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRG and SUNSEA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of GRG Banking i.e., GRG Banking and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between GRG Banking and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.72 times more return on investment than SUNSEA Telecommunicatio. However, GRG Banking Equipment is 1.39 times less risky than SUNSEA Telecommunicatio. It trades about 0.08 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about 0.05 per unit of risk. If you would invest 1,061 in GRG Banking Equipment on September 1, 2024 and sell it today you would earn a total of 245.00 from holding GRG Banking Equipment or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| GRG Banking Equipment |
| SUNSEA Telecommunicatio |
GRG Banking and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and SUNSEA Telecommunicatio
The main advantage of trading using opposite GRG Banking and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| GRG Banking vs. Semiconductor Manufacturing Intl | GRG Banking vs. Anhui Conch Cement | GRG Banking vs. Sungrow Power Supply | GRG Banking vs. Shenzhen New Nanshan |
| SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. Agricultural Bank of | SUNSEA Telecommunicatio vs. China Mobile Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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