Correlation Between Citic Guoan and Sunwave Communications
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By analyzing existing cross correlation between Citic Guoan Wine and Sunwave Communications Co, you can compare the effects of market volatilities on Citic Guoan 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 Citic Guoan with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Sunwave Communications.
Diversification Opportunities for Citic Guoan and Sunwave Communications
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Sunwave is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Citic Guoan 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 Citic Guoan Wine 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 Citic Guoan i.e., Citic Guoan and Sunwave Communications go up and down completely randomly.
Pair Corralation between Citic Guoan and Sunwave Communications
Assuming the 90 days trading horizon Citic Guoan is expected to generate 1.2 times less return on investment than Sunwave Communications. In addition to that, Citic Guoan is 1.01 times more volatile than Sunwave Communications Co. It trades about 0.05 of its total potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.06 per unit of volatility. If you would invest 526.00 in Sunwave Communications Co on September 1, 2024 and sell it today you would earn a total of 114.00 from holding Sunwave Communications Co or generate 21.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Sunwave Communications Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Sunwave Communications |
Citic Guoan and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Sunwave Communications
The main advantage of trading using opposite Citic Guoan and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan 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.| Citic Guoan vs. Xinjiang Baodi Mining | Citic Guoan vs. Minmetals Capital Co | Citic Guoan vs. Lutian Machinery Co | Citic Guoan vs. Shanghai Rightongene Biotechnology |
| Sunwave Communications vs. Northern United Publishing | Sunwave Communications vs. RoadMain T Co | Sunwave Communications vs. Broadex Technologies Co | Sunwave Communications vs. Beijing Kaiwen Education |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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