Correlation Between SUNSEA Telecommunicatio and CIMC Vehicles
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and CIMC Vehicles Co, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and CIMC Vehicles.
Diversification Opportunities for SUNSEA Telecommunicatio and CIMC Vehicles
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SUNSEA and CIMC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and CIMC Vehicles go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and CIMC Vehicles
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 5.27 times more return on investment than CIMC Vehicles. However, SUNSEA Telecommunicatio is 5.27 times more volatile than CIMC Vehicles Co. It trades about 0.05 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.39 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. CIMC Vehicles Co
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| CIMC Vehicles |
SUNSEA Telecommunicatio and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and CIMC Vehicles
The main advantage of trading using opposite SUNSEA Telecommunicatio and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
| CIMC Vehicles vs. SUNSEA Telecommunications Co | CIMC Vehicles vs. Nanjing Putian Telecommunications | CIMC Vehicles vs. Southern PublishingMedia Co | CIMC Vehicles vs. Ningbo Ligong Online |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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