Correlation Between Hua Xia and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Hua Xia Bank and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and SUNSEA Telecommunicatio.
Diversification Opportunities for Hua Xia and SUNSEA Telecommunicatio
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hua and SUNSEA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Hua Xia and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Hua Xia is expected to generate 11.48 times less return on investment than SUNSEA Telecommunicatio. But when comparing it to its historical volatility, Hua Xia Bank is 3.7 times less risky than SUNSEA Telecommunicatio. It trades about 0.03 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 721.00 in SUNSEA Telecommunications Co on October 15, 2024 and sell it today you would earn a total of 137.00 from holding SUNSEA Telecommunications Co or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Hua Xia Bank |
| SUNSEA Telecommunicatio |
Hua Xia and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and SUNSEA Telecommunicatio
The main advantage of trading using opposite Hua Xia and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Beijing Bewinner Communications | Hua Xia vs. Tongyu Communication | Hua Xia vs. Bus Online Co | Hua Xia vs. Guangzhou Haige Communications |
| SUNSEA Telecommunicatio vs. China Sports Industry | SUNSEA Telecommunicatio vs. HeBei Jinniu Chemical | SUNSEA Telecommunicatio vs. Shuhua Sports Co | SUNSEA Telecommunicatio vs. Shandong Rike Chemical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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