Correlation Between Huafa Industrial and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Huafa Industrial Co and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Huafa Industrial 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 Huafa Industrial with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and SUNSEA Telecommunicatio.
Diversification Opportunities for Huafa Industrial and SUNSEA Telecommunicatio
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and SUNSEA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Huafa Industrial 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 Huafa Industrial Co 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 Huafa Industrial i.e., Huafa Industrial and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Huafa Industrial and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Huafa Industrial Co is expected to generate 0.57 times more return on investment than SUNSEA Telecommunicatio. However, Huafa Industrial Co is 1.75 times less risky than SUNSEA Telecommunicatio. It trades about -0.08 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.1 per unit of risk. If you would invest 697.00 in Huafa Industrial Co on September 1, 2024 and sell it today you would lose (25.00) from holding Huafa Industrial Co or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Huafa Industrial |
| SUNSEA Telecommunicatio |
Huafa Industrial and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and SUNSEA Telecommunicatio
The main advantage of trading using opposite Huafa Industrial and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial 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.| Huafa Industrial vs. BeiGene | Huafa Industrial vs. Kweichow Moutai Co | Huafa Industrial vs. Beijing Roborock Technology | Huafa Industrial vs. G bits Network Technology |
| SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. Agricultural Bank of | SUNSEA Telecommunicatio vs. China Mobile Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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