Correlation Between Chengdu B and Sunwoda Electronic
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By analyzing existing cross correlation between Chengdu B ray Media and Sunwoda Electronic, you can compare the effects of market volatilities on Chengdu B and Sunwoda Electronic 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 Chengdu B with a short position of Sunwoda Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Sunwoda Electronic.
Diversification Opportunities for Chengdu B and Sunwoda Electronic
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Sunwoda is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of Chengdu B i.e., Chengdu B and Sunwoda Electronic go up and down completely randomly.
Pair Corralation between Chengdu B and Sunwoda Electronic
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Sunwoda Electronic. In addition to that, Chengdu B is 2.51 times more volatile than Sunwoda Electronic. It trades about -0.27 of its total potential returns per unit of risk. Sunwoda Electronic is currently generating about -0.17 per unit of volatility. If you would invest 2,274 in Sunwoda Electronic on October 18, 2024 and sell it today you would lose (172.00) from holding Sunwoda Electronic or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Sunwoda Electronic
Performance |
| Timeline |
| Chengdu B ray |
| Sunwoda Electronic |
Chengdu B and Sunwoda Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Sunwoda Electronic
The main advantage of trading using opposite Chengdu B and Sunwoda Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Sunwoda Electronic 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 Sunwoda Electronic will offset losses from the drop in Sunwoda Electronic's long position.| Chengdu B vs. Shaanxi Meineng Clean | Chengdu B vs. Beijing Sanyuan Foods | Chengdu B vs. Anji Foodstuff Co | Chengdu B vs. Guangdong Wens Foodstuff |
| Sunwoda Electronic vs. Chahua Modern Housewares | Sunwoda Electronic vs. Will Semiconductor Co | Sunwoda Electronic vs. Suzhou Oriental Semiconductor | Sunwoda Electronic vs. Thinkon Semiconductor Jinzhou |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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