Correlation Between Shanghai Shuixing and Sunwave Communications
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By analyzing existing cross correlation between Shanghai Shuixing Home and Sunwave Communications Co, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Sunwave Communications.
Diversification Opportunities for Shanghai Shuixing and Sunwave Communications
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Sunwave is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and Sunwave Communications go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Sunwave Communications
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 2.57 times less return on investment than Sunwave Communications. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.44 times less risky than Sunwave Communications. It trades about 0.05 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Sunwave Communications Co on November 3, 2024 and sell it today you would earn a total of 202.00 from holding Sunwave Communications Co or generate 46.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Sunwave Communications Co
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Sunwave Communications |
Shanghai Shuixing and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Sunwave Communications
The main advantage of trading using opposite Shanghai Shuixing and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Dongfeng Automobile Co | Shanghai Shuixing vs. Anhui Gujing Distillery | Shanghai Shuixing vs. GuoChuang Software Co | Shanghai Shuixing vs. Hangzhou Pinming Software |
| Sunwave Communications vs. Industrial and Commercial | Sunwave Communications vs. Kweichow Moutai Co | Sunwave Communications vs. Agricultural Bank of | Sunwave Communications vs. China Mobile Limited |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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