Correlation Between Pengxin International and Sunwave Communications
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By analyzing existing cross correlation between Pengxin International Mining and Sunwave Communications Co, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Sunwave Communications.
Diversification Opportunities for Pengxin International and Sunwave Communications
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pengxin and Sunwave is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and Sunwave Communications go up and down completely randomly.
Pair Corralation between Pengxin International and Sunwave Communications
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 0.65 times more return on investment than Sunwave Communications. However, Pengxin International Mining is 1.55 times less risky than Sunwave Communications. It trades about 0.31 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.17 per unit of risk. If you would invest 295.00 in Pengxin International Mining on November 11, 2024 and sell it today you would earn a total of 51.00 from holding Pengxin International Mining or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Sunwave Communications Co
Performance |
| Timeline |
| Pengxin International |
| Sunwave Communications |
Pengxin International and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Sunwave Communications
The main advantage of trading using opposite Pengxin International and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.| Pengxin International vs. Ningbo Tip Rubber | Pengxin International vs. Ningxia Building Materials | Pengxin International vs. GRIPM Advanced Materials | Pengxin International vs. Xinjiang Baodi Mining |
| Sunwave Communications vs. Ming Yang Smart | Sunwave Communications vs. 159681 | Sunwave Communications vs. 159005 | Sunwave Communications vs. Loctek Ergonomic Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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