Correlation Between SUNSEA Telecommunicatio and Bank of Communications
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Bank of Communications, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Bank of Communications.
Diversification Opportunities for SUNSEA Telecommunicatio and Bank of Communications
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SUNSEA and Bank is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Bank of Communications go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Bank of Communications
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 3.15 times more return on investment than Bank of Communications. However, SUNSEA Telecommunicatio is 3.15 times more volatile than Bank of Communications. It trades about 0.04 of its potential returns per unit of risk. Bank of Communications is currently generating about 0.09 per unit of risk. If you would invest 619.00 in SUNSEA Telecommunications Co on September 27, 2024 and sell it today you would earn a total of 197.00 from holding SUNSEA Telecommunications Co or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Bank of Communications
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Bank of Communications |
SUNSEA Telecommunicatio and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Bank of Communications
The main advantage of trading using opposite SUNSEA Telecommunicatio and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| SUNSEA Telecommunicatio vs. Ligao Foods CoLtd | SUNSEA Telecommunicatio vs. Xiamen Bank Co | SUNSEA Telecommunicatio vs. Hua Xia Bank | SUNSEA Telecommunicatio vs. Youyou 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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