Correlation Between SUNSEA Telecommunicatio and Runjian Communication
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Runjian Communication Co, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Runjian Communication.
Diversification Opportunities for SUNSEA Telecommunicatio and Runjian Communication
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SUNSEA and Runjian is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Runjian Communication go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Runjian Communication
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 1.79 times more return on investment than Runjian Communication. However, SUNSEA Telecommunicatio is 1.79 times more volatile than Runjian Communication Co. It trades about 0.05 of its potential returns per unit of risk. Runjian Communication Co is currently generating about 0.0 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Runjian Communication Co
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Runjian Communication |
SUNSEA Telecommunicatio and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Runjian Communication
The main advantage of trading using opposite SUNSEA Telecommunicatio and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication'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 |
| Runjian Communication vs. Heilongjiang Publishing Media | Runjian Communication vs. Ligao Foods CoLtd | Runjian Communication vs. Youyou Foods Co | Runjian Communication vs. Guangdong Wens Foodstuff |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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