Correlation Between Do Fluoride and China Satellite
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and China Satellite Communications, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and China Satellite.
Diversification Opportunities for Do Fluoride and China Satellite
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 002407 and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals 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 Do Fluoride 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 Do Fluoride Chemicals 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 Do Fluoride i.e., Do Fluoride and China Satellite go up and down completely randomly.
Pair Corralation between Do Fluoride and China Satellite
Assuming the 90 days trading horizon Do Fluoride is expected to generate 2.88 times less return on investment than China Satellite. But when comparing it to its historical volatility, Do Fluoride Chemicals Co is 1.79 times less risky than China Satellite. It trades about 0.16 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 1,690 in China Satellite Communications on September 4, 2024 and sell it today you would earn a total of 610.00 from holding China Satellite Communications or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. China Satellite Communications
Performance |
| Timeline |
| Do Fluoride Chemicals |
| China Satellite Comm |
Do Fluoride and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and China Satellite
The main advantage of trading using opposite Do Fluoride and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
| China Satellite vs. New China Life | China Satellite vs. Ming Yang Smart | China Satellite vs. 159681 | China Satellite vs. 159005 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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