Correlation Between Xiamen Jihong and Sunwave Communications
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By analyzing existing cross correlation between Xiamen Jihong Package and Sunwave Communications Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Sunwave Communications.
Diversification Opportunities for Xiamen Jihong and Sunwave Communications
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Sunwave is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Sunwave Communications go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Sunwave Communications
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Jihong Package is 1.6 times less risky than Sunwave Communications. The stock trades about -0.07 of its potential returns per unit of risk. The Sunwave Communications Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 604.00 in Sunwave Communications Co on October 16, 2024 and sell it today you would earn a total of 84.00 from holding Sunwave Communications Co or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Sunwave Communications Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Sunwave Communications |
Xiamen Jihong and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Sunwave Communications
The main advantage of trading using opposite Xiamen Jihong and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Giantec Semiconductor Corp | Xiamen Jihong vs. Eastroc Beverage Group | Xiamen Jihong vs. GigaDevice SemiconductorBeiji | Xiamen Jihong vs. Beijing Sanyuan Foods |
| Sunwave Communications vs. Gan Yuan Foods | Sunwave Communications vs. Xiwang Foodstuffs Co | Sunwave Communications vs. Xiamen Jihong Package | Sunwave Communications vs. Guilin Seamild 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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