Correlation Between SUNSEA Telecommunicatio and Beijing Mainstreets
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Beijing Mainstreets Investment, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Beijing Mainstreets 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 SUNSEA Telecommunicatio with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Beijing Mainstreets.
Diversification Opportunities for SUNSEA Telecommunicatio and Beijing Mainstreets
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUNSEA and Beijing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and SUNSEA 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 SUNSEA Telecommunications Co are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Beijing Mainstreets
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to under-perform the Beijing Mainstreets. In addition to that, SUNSEA Telecommunicatio is 1.66 times more volatile than Beijing Mainstreets Investment. It trades about -0.02 of its total potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about 0.01 per unit of volatility. If you would invest 247.00 in Beijing Mainstreets Investment on October 11, 2024 and sell it today you would lose (2.00) from holding Beijing Mainstreets Investment or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Beijing Mainstreets |
SUNSEA Telecommunicatio and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Beijing Mainstreets
The main advantage of trading using opposite SUNSEA Telecommunicatio and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| SUNSEA Telecommunicatio vs. Bingo Software Co | SUNSEA Telecommunicatio vs. Hangzhou Pinming Software | SUNSEA Telecommunicatio vs. Digiwin Software Co | SUNSEA Telecommunicatio vs. Kuangda Technology Group |
| Beijing Mainstreets vs. Huasi Agricultural Development | Beijing Mainstreets vs. Tianshui Huatian Technology | Beijing Mainstreets vs. Qijing Machinery | Beijing Mainstreets vs. Guangzhou KDT Machinery |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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