Correlation Between Shenyang Blue and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Shenyang Blue Silver and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and SUNSEA Telecommunicatio.
Diversification Opportunities for Shenyang Blue and SUNSEA Telecommunicatio
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenyang and SUNSEA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Shenyang Blue and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Blue Silver is 2.31 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.18 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 817.00 in SUNSEA Telecommunications Co on October 31, 2024 and sell it today you would earn a total of 18.00 from holding SUNSEA Telecommunications Co or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Shenyang Blue Silver |
| SUNSEA Telecommunicatio |
Shenyang Blue and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and SUNSEA Telecommunicatio
The main advantage of trading using opposite Shenyang Blue and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Easyhome New Retail | Shenyang Blue vs. Shanghai Phichem Material | Shenyang Blue vs. Nanya New Material | Shenyang Blue vs. Western Metal Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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