Correlation Between Chongqing Brewery and Sunwave Communications
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By analyzing existing cross correlation between Chongqing Brewery Co and Sunwave Communications Co, you can compare the effects of market volatilities on Chongqing Brewery 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 Chongqing Brewery with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Sunwave Communications.
Diversification Opportunities for Chongqing Brewery and Sunwave Communications
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Sunwave is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Chongqing Brewery 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 Chongqing Brewery Co 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 Chongqing Brewery i.e., Chongqing Brewery and Sunwave Communications go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Sunwave Communications
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.49 times less risky than Sunwave Communications. The stock trades about 0.0 of its potential returns per unit of risk. The Sunwave Communications Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 768.00 in Sunwave Communications Co on September 4, 2024 and sell it today you would lose (85.00) from holding Sunwave Communications Co or give up 11.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Sunwave Communications Co
Performance |
| Timeline |
| Chongqing Brewery |
| Sunwave Communications |
Chongqing Brewery and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Sunwave Communications
The main advantage of trading using opposite Chongqing Brewery and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery 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.| Chongqing Brewery vs. Beijing Kaiwen Education | Chongqing Brewery vs. Anhui Huaren Health | Chongqing Brewery vs. Hangzhou Coco Healthcare | Chongqing Brewery vs. Xinhua Winshare Publishing |
| Sunwave Communications vs. Anji Foodstuff Co | Sunwave Communications vs. HaiXin Foods Co | Sunwave Communications vs. JuneYao Dairy Co | Sunwave Communications vs. New Hope Dairy |
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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