Correlation Between HaiXin Foods and Sunwave Communications
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By analyzing existing cross correlation between HaiXin Foods Co and Sunwave Communications Co, you can compare the effects of market volatilities on HaiXin Foods and Sunwave 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 HaiXin Foods with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of HaiXin Foods and Sunwave Communications.
Diversification Opportunities for HaiXin Foods and Sunwave Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HaiXin and Sunwave is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding HaiXin Foods Co and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and HaiXin Foods 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 HaiXin Foods Co are associated (or correlated) with Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of HaiXin Foods i.e., HaiXin Foods and Sunwave Communications go up and down completely randomly.
Pair Corralation between HaiXin Foods and Sunwave Communications
Assuming the 90 days trading horizon HaiXin Foods is expected to generate 1.46 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, HaiXin Foods Co is 1.5 times less risky than Sunwave Communications. It trades about 0.35 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Sunwave Communications Co on September 12, 2024 and sell it today you would earn a total of 295.00 from holding Sunwave Communications Co or generate 49.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HaiXin Foods Co vs. Sunwave Communications Co
Performance |
| Timeline |
| HaiXin Foods |
| Sunwave Communications |
HaiXin Foods and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HaiXin Foods and Sunwave Communications
The main advantage of trading using opposite HaiXin Foods and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HaiXin Foods position performs unexpectedly, Sunwave 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| HaiXin Foods vs. China Petroleum Chemical | HaiXin Foods vs. PetroChina Co Ltd | HaiXin Foods vs. China State Construction | HaiXin Foods vs. China Railway Group |
| Sunwave Communications vs. Guangdong Qunxing Toys | Sunwave Communications vs. Sinocat Environmental Technology | Sunwave Communications vs. Juneyao Airlines | Sunwave Communications vs. Hainan Airlines 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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