Correlation Between China Securities and China Satellite
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By analyzing existing cross correlation between China Securities 800 and China Satellite Communications, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and China Satellite.
Diversification Opportunities for China Securities and China Satellite
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 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 China Securities 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 China Securities 800 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 China Securities i.e., China Securities and China Satellite go up and down completely randomly.
Pair Corralation between China Securities and China Satellite
Assuming the 90 days trading horizon China Securities 800 is expected to under-perform the China Satellite. But the index apears to be less risky and, when comparing its historical volatility, China Securities 800 is 2.42 times less risky than China Satellite. The index trades about -0.04 of its potential returns per unit of risk. The China Satellite Communications is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,728 in China Satellite Communications on August 29, 2024 and sell it today you would earn a total of 289.00 from holding China Satellite Communications or generate 16.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Securities 800 vs. China Satellite Communications
Performance |
| Timeline |
China Securities and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
China Securities 800
Pair trading matchups for China Securities
China Satellite Communications
Pair trading matchups for China Satellite
Pair Trading with China Securities and China Satellite
The main advantage of trading using opposite China Securities and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.| China Securities vs. Tibet Huayu Mining | China Securities vs. Keeson Technology Corp | China Securities vs. OBiO Technology Corp | China Securities vs. ROPEOK Technology Group |
| China Satellite vs. Industrial and Commercial | China Satellite vs. Agricultural Bank of | China Satellite vs. China Construction Bank | China Satellite vs. Bank of China |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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