Correlation Between Sinomach Automobile and Sunwave Communications
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By analyzing existing cross correlation between Sinomach Automobile Co and Sunwave Communications Co, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Sunwave Communications.
Diversification Opportunities for Sinomach Automobile and Sunwave Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Sunwave is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile i.e., Sinomach Automobile and Sunwave Communications go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Sunwave Communications
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.04 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Sunwave Communications Co on August 24, 2024 and sell it today you would earn a total of 88.00 from holding Sunwave Communications Co or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Sunwave Communications Co
Performance |
| Timeline |
| Sinomach Automobile |
| Sunwave Communications |
Sinomach Automobile and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Sunwave Communications
The main advantage of trading using opposite Sinomach Automobile and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Dhc Software Co | Sinomach Automobile vs. AVIC Fund Management | Sinomach Automobile vs. Holitech Technology Co | Sinomach Automobile vs. CICC Fund Management |
| Sunwave Communications vs. Ming Yang Smart | Sunwave Communications vs. 159005 | Sunwave Communications vs. Loctek Ergonomic Technology | Sunwave Communications vs. Xiamen East Asia |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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