Correlation Between SUNSEA Telecommunicatio and Sichuan Fulin
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Sichuan Fulin Transportation, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Sichuan Fulin.
Diversification Opportunities for SUNSEA Telecommunicatio and Sichuan Fulin
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUNSEA and Sichuan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Sichuan Fulin go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Sichuan Fulin
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 2.06 times more return on investment than Sichuan Fulin. However, SUNSEA Telecommunicatio is 2.06 times more volatile than Sichuan Fulin Transportation. It trades about 0.05 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about -0.03 per unit of risk. If you would invest 923.00 in SUNSEA Telecommunications Co on October 11, 2024 and sell it today you would earn a total of 24.00 from holding SUNSEA Telecommunications Co or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Sichuan Fulin Transp |
SUNSEA Telecommunicatio and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Sichuan Fulin
The main advantage of trading using opposite SUNSEA Telecommunicatio and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin'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 |
| Sichuan Fulin vs. Dareway Software Co | Sichuan Fulin vs. Muyuan Foodstuff Co | Sichuan Fulin vs. Ligao Foods CoLtd | Sichuan Fulin vs. Great Sun Foods Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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