Correlation Between SUNSEA Telecommunicatio and Anhui Transport
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By analyzing existing cross correlation between SUNSEA Telecommunications Co and Anhui Transport Consulting, you can compare the effects of market volatilities on SUNSEA Telecommunicatio and Anhui Transport 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 SUNSEA Telecommunicatio with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNSEA Telecommunicatio and Anhui Transport.
Diversification Opportunities for SUNSEA Telecommunicatio and Anhui Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SUNSEA and Anhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SUNSEA Telecommunications Co and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and SUNSEA Telecommunicatio 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 SUNSEA Telecommunications Co are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of SUNSEA Telecommunicatio i.e., SUNSEA Telecommunicatio and Anhui Transport go up and down completely randomly.
Pair Corralation between SUNSEA Telecommunicatio and Anhui Transport
Assuming the 90 days trading horizon SUNSEA Telecommunications Co is expected to generate 1.62 times more return on investment than Anhui Transport. However, SUNSEA Telecommunicatio is 1.62 times more volatile than Anhui Transport Consulting. It trades about 0.27 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.18 per unit of risk. If you would invest 574.00 in SUNSEA Telecommunications Co on September 15, 2024 and sell it today you would earn a total of 518.00 from holding SUNSEA Telecommunications Co or generate 90.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
SUNSEA Telecommunications Co vs. Anhui Transport Consulting
Performance |
Timeline |
SUNSEA Telecommunicatio |
Anhui Transport Cons |
SUNSEA Telecommunicatio and Anhui Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SUNSEA Telecommunicatio and Anhui Transport
The main advantage of trading using opposite SUNSEA Telecommunicatio and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNSEA Telecommunicatio position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.SUNSEA Telecommunicatio vs. Industrial and Commercial | ||
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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