Correlation Between Guilin Seamild and Sunwave Communications
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By analyzing existing cross correlation between Guilin Seamild Foods and Sunwave Communications Co, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Sunwave Communications.
Diversification Opportunities for Guilin Seamild and Sunwave Communications
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and Sunwave is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Sunwave Communications go up and down completely randomly.
Pair Corralation between Guilin Seamild and Sunwave Communications
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.56 times more return on investment than Sunwave Communications. However, Guilin Seamild Foods is 1.78 times less risky than Sunwave Communications. It trades about 0.16 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.08 per unit of risk. If you would invest 1,324 in Guilin Seamild Foods on October 16, 2024 and sell it today you would earn a total of 283.00 from holding Guilin Seamild Foods or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Sunwave Communications Co
Performance |
| Timeline |
| Guilin Seamild Foods |
| Sunwave Communications |
Guilin Seamild and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Sunwave Communications
The main advantage of trading using opposite Guilin Seamild and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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