Correlation Between Zhongtong Guomai and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between Zhongtong Guomai Communication and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Zhongtong Guomai and SUNSEA Telecommunicatio 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 Zhongtong Guomai with a short position of SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and SUNSEA Telecommunicatio.
Diversification Opportunities for Zhongtong Guomai and SUNSEA Telecommunicatio
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and SUNSEA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.05 times more return on investment than SUNSEA Telecommunicatio. However, Zhongtong Guomai is 1.05 times more volatile than SUNSEA Telecommunications Co. It trades about 0.2 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about 0.05 per unit of risk. If you would invest 465.00 in Zhongtong Guomai Communication on September 1, 2024 and sell it today you would earn a total of 656.00 from holding Zhongtong Guomai Communication or generate 141.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| SUNSEA Telecommunicatio |
Zhongtong Guomai and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and SUNSEA Telecommunicatio
The main advantage of trading using opposite Zhongtong Guomai and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
| SUNSEA Telecommunicatio vs. Industrial and Commercial | SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. Agricultural Bank of | SUNSEA Telecommunicatio 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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