Correlation Between Xiangyang Automobile and China Satellite
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and China Satellite Communications, you can compare the effects of market volatilities on Xiangyang Automobile and China Satellite 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 Xiangyang Automobile with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and China Satellite.
Diversification Opportunities for Xiangyang Automobile and China Satellite
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and China Satellite go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and China Satellite
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 4.75 times less return on investment than China Satellite. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.71 times less risky than China Satellite. It trades about 0.09 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,700 in China Satellite Communications on September 1, 2024 and sell it today you would earn a total of 617.00 from holding China Satellite Communications or generate 36.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. China Satellite Communications
Performance |
| Timeline |
| Xiangyang Automobile |
| China Satellite Comm |
Xiangyang Automobile and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and China Satellite
The main advantage of trading using opposite Xiangyang Automobile and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Xiangyang Automobile vs. BYD Co Ltd | Xiangyang Automobile vs. China Mobile Limited | Xiangyang Automobile vs. Agricultural Bank of | Xiangyang Automobile vs. Industrial and Commercial |
| China Satellite vs. Qingdao Choho Industrial | China Satellite vs. Ye Chiu Metal | China Satellite vs. Shenzhen Kexin Communication | China Satellite vs. Haima Automobile Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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