Correlation Between SUNSEA Telecommunicatio and Shanghai Action
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Shanghai Action Education, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Shanghai Action.
Diversification Opportunities for SUNSEA Telecommunicatio and Shanghai Action
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SUNSEA and Shanghai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Shanghai Action go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Shanghai Action
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 1.34 times more return on investment than Shanghai Action. However, SUNSEA Telecommunicatio is 1.34 times more volatile than Shanghai Action Education. It trades about 0.15 of its potential returns per unit of risk. Shanghai Action Education is currently generating about 0.07 per unit of risk. If you would invest 904.00 in SUNSEA Telecommunications Co on September 13, 2024 and sell it today you would earn a total of 111.00 from holding SUNSEA Telecommunications Co or generate 12.28% 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. Shanghai Action Education
Performance |
| Timeline |
| SUNSEA Telecommunicatio |
| Shanghai Action Education |
SUNSEA Telecommunicatio and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNSEA Telecommunicatio and Shanghai Action
The main advantage of trading using opposite SUNSEA Telecommunicatio and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action'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 |
| Shanghai Action vs. SUNSEA Telecommunications Co | Shanghai Action vs. Xinjiang Communications Construction | Shanghai Action vs. Anji Foodstuff Co | Shanghai Action vs. Shanghai Ziyan Foods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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