Correlation Between Guangdong Shenglu and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Guangdong Shenglu and SUNSEA Telecommunicatio 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 Guangdong Shenglu with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and SUNSEA Telecommunicatio.
Diversification Opportunities for Guangdong Shenglu and SUNSEA Telecommunicatio
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and SUNSEA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.46 times more return on investment than SUNSEA Telecommunicatio. However, Guangdong Shenglu Telecommunication is 2.15 times less risky than SUNSEA Telecommunicatio. It trades about -0.2 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.12 per unit of risk. If you would invest 740.00 in Guangdong Shenglu Telecommunication on October 17, 2024 and sell it today you would lose (97.00) from holding Guangdong Shenglu Telecommunication or give up 13.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Guangdong Shenglu |
| SUNSEA Telecommunicatio |
Guangdong Shenglu and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and SUNSEA Telecommunicatio
The main advantage of trading using opposite Guangdong Shenglu and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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