Correlation Between Xinjiang Communications and Sunwave Communications
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By analyzing existing cross correlation between Xinjiang Communications Construction and Sunwave Communications Co, you can compare the effects of market volatilities on Xinjiang Communications 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 Xinjiang Communications with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Sunwave Communications.
Diversification Opportunities for Xinjiang Communications and Sunwave Communications
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Sunwave is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Xinjiang Communications 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 Xinjiang Communications Construction 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 Xinjiang Communications i.e., Xinjiang Communications and Sunwave Communications go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Sunwave Communications
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 2.95 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Xinjiang Communications Construction is 1.63 times less risky than Sunwave Communications. It trades about 0.18 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Sunwave Communications Co on September 4, 2024 and sell it today you would earn a total of 185.00 from holding Sunwave Communications Co or generate 35.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Sunwave Communications Co
Performance |
| Timeline |
| Xinjiang Communications |
| Sunwave Communications |
Xinjiang Communications and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Sunwave Communications
The main advantage of trading using opposite Xinjiang Communications and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications 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.| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec Co |
| Sunwave Communications vs. Anji Foodstuff Co | Sunwave Communications vs. HaiXin Foods Co | Sunwave Communications vs. JuneYao Dairy Co | Sunwave Communications vs. New Hope Dairy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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