Correlation Between Penghua Shenzhen and Sunwave Communications
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Sunwave Communications Co, you can compare the effects of market volatilities on Penghua Shenzhen 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 Penghua Shenzhen with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Sunwave Communications.
Diversification Opportunities for Penghua Shenzhen and Sunwave Communications
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Sunwave is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Penghua Shenzhen 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 Penghua Shenzhen Energy 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 Penghua Shenzhen i.e., Penghua Shenzhen and Sunwave Communications go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Sunwave Communications
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 8.66 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 8.12 times less risky than Sunwave Communications. It trades about 0.21 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 544.00 in Sunwave Communications Co on August 30, 2024 and sell it today you would earn a total of 121.00 from holding Sunwave Communications Co or generate 22.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Sunwave Communications Co
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Sunwave Communications |
Penghua Shenzhen and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Sunwave Communications
The main advantage of trading using opposite Penghua Shenzhen and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen 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.| Penghua Shenzhen vs. Guangzhou Jinyi Media | Penghua Shenzhen vs. Oriental Times Media | Penghua Shenzhen vs. China Sports Industry | Penghua Shenzhen vs. Chengdu B ray Media |
| Sunwave Communications vs. Kangxin New Materials | Sunwave Communications vs. Andon Health Co | Sunwave Communications vs. Dhc Software Co | Sunwave Communications vs. Impulse Qingdao Health |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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