Correlation Between Sunny Loan and Sichuan Teway
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By analyzing existing cross correlation between Sunny Loan Top and Sichuan Teway Food, you can compare the effects of market volatilities on Sunny Loan and Sichuan Teway 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 Sunny Loan with a short position of Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Sichuan Teway.
Diversification Opportunities for Sunny Loan and Sichuan Teway
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Sichuan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway Food and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Sunny Loan i.e., Sunny Loan and Sichuan Teway go up and down completely randomly.
Pair Corralation between Sunny Loan and Sichuan Teway
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Sichuan Teway. In addition to that, Sunny Loan is 2.18 times more volatile than Sichuan Teway Food. It trades about -0.21 of its total potential returns per unit of risk. Sichuan Teway Food is currently generating about -0.19 per unit of volatility. If you would invest 1,464 in Sichuan Teway Food on October 17, 2024 and sell it today you would lose (121.00) from holding Sichuan Teway Food or give up 8.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Sichuan Teway Food
Performance |
| Timeline |
| Sunny Loan Top |
| Sichuan Teway Food |
Sunny Loan and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Sichuan Teway
The main advantage of trading using opposite Sunny Loan and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway's long position.| Sunny Loan vs. Anhui Gujing Distillery | Sunny Loan vs. Beijing Shunxin Agriculture | Sunny Loan vs. Shenyang Huitian Thermal | Sunny Loan vs. Anhui Tongguan Copper |
| Sichuan Teway vs. Sunny Loan Top | Sichuan Teway vs. Southern PublishingMedia Co | Sichuan Teway vs. Jiangsu Phoenix Publishing | Sichuan Teway vs. Zhongshan Public Utilities |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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