Correlation Between Xinjiang Tianrun and Sunwave Communications
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Sunwave Communications Co, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Sunwave Communications.
Diversification Opportunities for Xinjiang Tianrun and Sunwave Communications
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Sunwave is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Sunwave Communications go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Sunwave Communications
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.63 times less risky than Sunwave Communications. The stock trades about -0.05 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 532.00 in Sunwave Communications Co on October 30, 2024 and sell it today you would earn a total of 108.00 from holding Sunwave Communications Co or generate 20.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Sunwave Communications Co
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Sunwave Communications |
Xinjiang Tianrun and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Sunwave Communications
The main advantage of trading using opposite Xinjiang Tianrun and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. XiaMen HongXin Electron tech | Xinjiang Tianrun vs. Ningbo MedicalSystem Biotechnology | Xinjiang Tianrun vs. Linewell Software Co | Xinjiang Tianrun vs. Dhc Software Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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