Correlation Between Changsha Jingjia and Sunwave Communications
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By analyzing existing cross correlation between Changsha Jingjia Microelectronics and Sunwave Communications Co, you can compare the effects of market volatilities on Changsha Jingjia 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 Changsha Jingjia with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changsha Jingjia and Sunwave Communications.
Diversification Opportunities for Changsha Jingjia and Sunwave Communications
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changsha and Sunwave is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Changsha Jingjia Microelectron and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Changsha Jingjia 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 Changsha Jingjia Microelectronics 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 Changsha Jingjia i.e., Changsha Jingjia and Sunwave Communications go up and down completely randomly.
Pair Corralation between Changsha Jingjia and Sunwave Communications
Assuming the 90 days trading horizon Changsha Jingjia Microelectronics is expected to generate 1.18 times more return on investment than Sunwave Communications. However, Changsha Jingjia is 1.18 times more volatile than Sunwave Communications Co. It trades about 0.04 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.03 per unit of risk. If you would invest 6,045 in Changsha Jingjia Microelectronics on October 16, 2024 and sell it today you would earn a total of 2,777 from holding Changsha Jingjia Microelectronics or generate 45.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changsha Jingjia Microelectron vs. Sunwave Communications Co
Performance |
| Timeline |
| Changsha Jingjia Mic |
| Sunwave Communications |
Changsha Jingjia and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changsha Jingjia and Sunwave Communications
The main advantage of trading using opposite Changsha Jingjia and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changsha Jingjia 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.| Changsha Jingjia vs. Sunwave Communications Co | Changsha Jingjia vs. Aba Chemicals Corp | Changsha Jingjia vs. Songz Automobile Air | Changsha Jingjia vs. Beijing Kingsoft Office |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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