Correlation Between Allwin Telecommunicatio and China Satellite
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By analyzing existing cross correlation between Allwin Telecommunication Co and China Satellite Communications, you can compare the effects of market volatilities on Allwin Telecommunicatio 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 Allwin Telecommunicatio with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and China Satellite.
Diversification Opportunities for Allwin Telecommunicatio and China Satellite
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allwin and China is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co 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 Allwin 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 Allwin Telecommunication Co 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 Allwin Telecommunicatio i.e., Allwin Telecommunicatio and China Satellite go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and China Satellite
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.38 times more return on investment than China Satellite. However, Allwin Telecommunicatio is 1.38 times more volatile than China Satellite Communications. It trades about -0.1 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.2 per unit of risk. If you would invest 607.00 in Allwin Telecommunication Co on October 25, 2024 and sell it today you would lose (46.00) from holding Allwin Telecommunication Co or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. China Satellite Communications
Performance |
| Timeline |
| Allwin Telecommunicatio |
| China Satellite Comm |
Allwin Telecommunicatio and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and China Satellite
The main advantage of trading using opposite Allwin Telecommunicatio and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio 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.| Allwin Telecommunicatio vs. Tongyu Communication | Allwin Telecommunicatio vs. Xiamen Bank Co | Allwin Telecommunicatio vs. China Satellite Communications | Allwin Telecommunicatio vs. Hua Xia Bank |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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