Correlation Between APT Medical and Sunwave Communications
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By analyzing existing cross correlation between APT Medical and Sunwave Communications Co, you can compare the effects of market volatilities on APT Medical 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 APT Medical with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of APT Medical and Sunwave Communications.
Diversification Opportunities for APT Medical and Sunwave Communications
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between APT and Sunwave is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding APT Medical and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and APT Medical 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 APT Medical 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 APT Medical i.e., APT Medical and Sunwave Communications go up and down completely randomly.
Pair Corralation between APT Medical and Sunwave Communications
Assuming the 90 days trading horizon APT Medical is expected to generate 0.78 times more return on investment than Sunwave Communications. However, APT Medical is 1.28 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 0.02 per unit of risk. If you would invest 23,744 in APT Medical on August 31, 2024 and sell it today you would earn a total of 11,471 from holding APT Medical or generate 48.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APT Medical vs. Sunwave Communications Co
Performance |
| Timeline |
| APT Medical |
| Sunwave Communications |
APT Medical and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APT Medical and Sunwave Communications
The main advantage of trading using opposite APT Medical and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APT Medical 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.| APT Medical vs. PetroChina Co Ltd | APT Medical vs. China Mobile Limited | APT Medical vs. Ping An Insurance | APT Medical vs. China Petroleum Chemical |
| Sunwave Communications vs. Kweichow Moutai Co | Sunwave Communications vs. NAURA Technology Group | Sunwave Communications vs. APT Medical | Sunwave Communications vs. Contemporary Amperex Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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