Correlation Between Xinjiang Baodi and Sunwave Communications
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Sunwave Communications Co, you can compare the effects of market volatilities on Xinjiang Baodi 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 Baodi with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Sunwave Communications.
Diversification Opportunities for Xinjiang Baodi and Sunwave Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Sunwave is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi 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 Xinjiang Baodi 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 Baodi 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 Xinjiang Baodi i.e., Xinjiang Baodi and Sunwave Communications go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Sunwave Communications
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Sunwave Communications. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.35 times less risky than Sunwave Communications. The stock trades about -0.02 of its potential returns per unit of risk. The Sunwave Communications Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 642.00 in Sunwave Communications Co on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Sunwave Communications Co or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Sunwave Communications Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Sunwave Communications |
Xinjiang Baodi and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Sunwave Communications
The main advantage of trading using opposite Xinjiang Baodi and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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 Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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