Correlation Between SUNSEA Telecommunicatio and China Eastern
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and China Eastern Airlines, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and China Eastern.
Diversification Opportunities for SUNSEA Telecommunicatio and China Eastern
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUNSEA and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and China Eastern go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and China Eastern
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 2.74 times more return on investment than China Eastern. However, SUNSEA Telecommunicatio is 2.74 times more volatile than China Eastern Airlines. It trades about 0.06 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.03 per unit of risk. If you would invest 560.00 in SUNSEA Telecommunications Co on September 14, 2024 and sell it today you would earn a total of 557.00 from holding SUNSEA Telecommunications Co or generate 99.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. China Eastern Airlines
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| China Eastern Airlines |
SUNSEA Telecommunicatio and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and China Eastern
The main advantage of trading using opposite SUNSEA Telecommunicatio and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. China Construction Bank | SUNSEA Telecommunicatio vs. Bank of China | SUNSEA Telecommunicatio vs. Agricultural Bank of |
| China Eastern vs. Olympic Circuit Technology | China Eastern vs. Iat Automobile Technology | China Eastern vs. Linewell Software Co | China Eastern vs. Sunny Loan Top |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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