Correlation Between Zhejiang Construction and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Zhejiang Construction Investment and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Zhejiang Construction 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 Zhejiang Construction with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and SUNSEA Telecommunicatio.
Diversification Opportunities for Zhejiang Construction and SUNSEA Telecommunicatio
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and SUNSEA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Zhejiang Construction 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 Zhejiang Construction Investment 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 Zhejiang Construction i.e., Zhejiang Construction and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Zhejiang Construction and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 1.42 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.06 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 836.00 in SUNSEA Telecommunications Co on October 16, 2024 and sell it today you would earn a total of 138.00 from holding SUNSEA Telecommunications Co or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Zhejiang Construction |
| SUNSEA Telecommunicatio |
Zhejiang Construction and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and SUNSEA Telecommunicatio
The main advantage of trading using opposite Zhejiang Construction and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction 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.| Zhejiang Construction vs. Tongyu Communication | Zhejiang Construction vs. Fujian Newland Computer | Zhejiang Construction vs. Cicc Fund Management | Zhejiang Construction vs. Kuang Chi Technologies |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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