Correlation Between Anhui Jianghuai and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Anhui Jianghuai 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 Anhui Jianghuai with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and SUNSEA Telecommunicatio.
Diversification Opportunities for Anhui Jianghuai and SUNSEA Telecommunicatio
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and SUNSEA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 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 Anhui Jianghuai i.e., Anhui Jianghuai and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Jianghuai Automobile is 2.36 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.02 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 923.00 in SUNSEA Telecommunications Co on October 11, 2024 and sell it today you would earn a total of 24.00 from holding SUNSEA Telecommunications Co or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| SUNSEA Telecommunicatio |
Anhui Jianghuai and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and SUNSEA Telecommunicatio
The main advantage of trading using opposite Anhui Jianghuai and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai 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.| Anhui Jianghuai vs. Changchun Engley Automobile | Anhui Jianghuai vs. King Strong New Material | Anhui Jianghuai vs. Western Metal Materials | Anhui Jianghuai vs. Guangzhou Tinci Materials |
| SUNSEA Telecommunicatio vs. Bingo Software Co | SUNSEA Telecommunicatio vs. Hangzhou Pinming Software | SUNSEA Telecommunicatio vs. Digiwin Software Co | SUNSEA Telecommunicatio vs. Kuangda Technology Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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