Correlation Between Sunwoda Electronic and Chahua Modern
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By analyzing existing cross correlation between Sunwoda Electronic and Chahua Modern Housewares, you can compare the effects of market volatilities on Sunwoda Electronic and Chahua Modern 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 Sunwoda Electronic with a short position of Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwoda Electronic and Chahua Modern.
Diversification Opportunities for Sunwoda Electronic and Chahua Modern
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sunwoda and Chahua is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sunwoda Electronic and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares and Sunwoda Electronic 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 Sunwoda Electronic are associated (or correlated) with Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Sunwoda Electronic i.e., Sunwoda Electronic and Chahua Modern go up and down completely randomly.
Pair Corralation between Sunwoda Electronic and Chahua Modern
Assuming the 90 days trading horizon Sunwoda Electronic is expected to generate 0.83 times more return on investment than Chahua Modern. However, Sunwoda Electronic is 1.2 times less risky than Chahua Modern. It trades about 0.08 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.06 per unit of risk. If you would invest 1,255 in Sunwoda Electronic on October 18, 2024 and sell it today you would earn a total of 847.00 from holding Sunwoda Electronic or generate 67.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunwoda Electronic vs. Chahua Modern Housewares
Performance |
| Timeline |
| Sunwoda Electronic |
| Chahua Modern Housewares |
Sunwoda Electronic and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunwoda Electronic and Chahua Modern
The main advantage of trading using opposite Sunwoda Electronic and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwoda Electronic position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Sunwoda Electronic vs. Ping An Insurance | Sunwoda Electronic vs. Easyhome New Retail | Sunwoda Electronic vs. Postal Savings Bank | Sunwoda Electronic vs. Unisplendour Corp |
| Chahua Modern vs. Zhejiang Yongjin Metal | Chahua Modern vs. Rising Nonferrous Metals | Chahua Modern vs. Xinjiang Communications Construction | Chahua Modern vs. Eastern Communications Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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