Correlation Between Guangdong Shenglu and China Satellite
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and China Satellite Communications, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and China Satellite.
Diversification Opportunities for Guangdong Shenglu and China Satellite
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and China Satellite go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and China Satellite
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.44 times more return on investment than China Satellite. However, Guangdong Shenglu Telecommunication is 2.29 times less risky than China Satellite. It trades about 0.01 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.06 per unit of risk. If you would invest 772.00 in Guangdong Shenglu Telecommunication on September 13, 2024 and sell it today you would lose (2.00) from holding Guangdong Shenglu Telecommunication or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. China Satellite Communications
Performance |
| Timeline |
| Guangdong Shenglu |
| China Satellite Comm |
Guangdong Shenglu and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and China Satellite
The main advantage of trading using opposite Guangdong Shenglu and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. China Railway Materials | Guangdong Shenglu vs. Xinke Material | Guangdong Shenglu vs. Orinko Advanced Plastics | Guangdong Shenglu vs. Chongqing Sulian Plastic |
| China Satellite vs. Industrial and Commercial | China Satellite vs. China Construction Bank | China Satellite vs. Agricultural Bank of | 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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