Correlation Between SUNSEA Telecommunicatio and Shenzhen Coship
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Shenzhen Coship Electronics, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Shenzhen Coship.
Diversification Opportunities for SUNSEA Telecommunicatio and Shenzhen Coship
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUNSEA and Shenzhen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Shenzhen Coship go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Shenzhen Coship
Assuming the 90 days trading horizon SUNSEA Telecommunicatio is expected to generate 5.08 times less return on investment than Shenzhen Coship. But when comparing it to its historical volatility, SUNSEA Telecommunications Co is 1.0 times less risky than Shenzhen Coship. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Shenzhen Coship Electronics on October 12, 2024 and sell it today you would earn a total of 434.00 from holding Shenzhen Coship Electronics or generate 205.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Shenzhen Coship Elec |
SUNSEA Telecommunicatio and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Shenzhen Coship
The main advantage of trading using opposite SUNSEA Telecommunicatio and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's 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 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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