Correlation Between Allwin Telecommunicatio and Suwen Electric
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By analyzing existing cross correlation between Allwin Telecommunication Co and Suwen Electric Energy, you can compare the effects of market volatilities on Allwin Telecommunicatio and Suwen Electric 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 Allwin Telecommunicatio with a short position of Suwen Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Suwen Electric.
Diversification Opportunities for Allwin Telecommunicatio and Suwen Electric
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allwin and Suwen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Suwen Electric Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suwen Electric Energy and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Suwen Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suwen Electric Energy has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Suwen Electric go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Suwen Electric
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to under-perform the Suwen Electric. In addition to that, Allwin Telecommunicatio is 1.17 times more volatile than Suwen Electric Energy. It trades about -0.1 of its total potential returns per unit of risk. Suwen Electric Energy is currently generating about -0.1 per unit of volatility. If you would invest 1,891 in Suwen Electric Energy on October 25, 2024 and sell it today you would lose (130.00) from holding Suwen Electric Energy or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Suwen Electric Energy
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Suwen Electric Energy |
Allwin Telecommunicatio and Suwen Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Suwen Electric
The main advantage of trading using opposite Allwin Telecommunicatio and Suwen Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Suwen Electric 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 Suwen Electric will offset losses from the drop in Suwen Electric's long position.| Allwin Telecommunicatio vs. Tongyu Communication | Allwin Telecommunicatio vs. Xiamen Bank Co | Allwin Telecommunicatio vs. China Satellite Communications | Allwin Telecommunicatio vs. Hua Xia Bank |
| Suwen Electric vs. Guangzhou Automobile Group | Suwen Electric vs. Changchun Engley Automobile | Suwen Electric vs. Xiangyang Automobile Bearing | Suwen Electric vs. Maxvision Technology Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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