Correlation Between Chengdu Spaceon and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and SUNSEA Telecommunicatio.
Diversification Opportunities for Chengdu Spaceon and SUNSEA Telecommunicatio
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and SUNSEA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.32 times more return on investment than SUNSEA Telecommunicatio. However, Chengdu Spaceon Electronics is 3.12 times less risky than SUNSEA Telecommunicatio. It trades about -0.33 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.15 per unit of risk. If you would invest 1,744 in Chengdu Spaceon Electronics on October 14, 2024 and sell it today you would lose (237.00) from holding Chengdu Spaceon Electronics or give up 13.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| SUNSEA Telecommunicatio |
Chengdu Spaceon and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and SUNSEA Telecommunicatio
The main advantage of trading using opposite Chengdu Spaceon and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Guocheng Mining Co | Chengdu Spaceon vs. Bus Online Co | Chengdu Spaceon vs. Strait Innovation Internet | Chengdu Spaceon vs. Pengxin International Mining |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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