Correlation Between Anhui Jianghuai and Sunwave Communications
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Sunwave Communications Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Sunwave Communications.
Diversification Opportunities for Anhui Jianghuai and Sunwave Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Sunwave is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Anhui Jianghuai 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 Anhui Jianghuai Automobile 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 Anhui Jianghuai i.e., Anhui Jianghuai and Sunwave Communications go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Sunwave Communications
Assuming the 90 days trading horizon Anhui Jianghuai is expected to generate 1.95 times less return on investment than Sunwave Communications. In addition to that, Anhui Jianghuai is 1.16 times more volatile than Sunwave Communications Co. It trades about 0.09 of its total potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.2 per unit of volatility. If you would invest 568.00 in Sunwave Communications Co on August 29, 2024 and sell it today you would earn a total of 109.00 from holding Sunwave Communications Co or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Sunwave Communications Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Sunwave Communications |
Anhui Jianghuai and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Sunwave Communications
The main advantage of trading using opposite Anhui Jianghuai and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Lutian Machinery Co | Anhui Jianghuai vs. China Longyuan Power | Anhui Jianghuai vs. Changshu Tongrun Auto | Anhui Jianghuai vs. PetroChina Co Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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