Correlation Between SUNSEA Telecommunicatio and Zhejiang Yongjin
Specify exactly 2 symbols:
By analyzing existing cross correlation between SUNSEA Telecommunications Co and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Zhejiang Yongjin.
Diversification Opportunities for SUNSEA Telecommunicatio and Zhejiang Yongjin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SUNSEA and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Zhejiang Yongjin
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to under-perform the Zhejiang Yongjin. In addition to that, SUNSEA Telecommunicatio is 1.89 times more volatile than Zhejiang Yongjin Metal. It trades about -0.15 of its total potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.01 per unit of volatility. If you would invest 1,894 in Zhejiang Yongjin Metal on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Zhejiang Yongjin Metal or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNSEA Telecommunications Co vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Zhejiang Yongjin Metal |
SUNSEA Telecommunicatio and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Zhejiang Yongjin
The main advantage of trading using opposite SUNSEA Telecommunicatio and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. NAURA Technology Group | SUNSEA Telecommunicatio vs. APT Medical | SUNSEA Telecommunicatio vs. Contemporary Amperex Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |