Correlation Between Songz Automobile and China Satellite
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By analyzing existing cross correlation between Songz Automobile Air and China Satellite Communications, you can compare the effects of market volatilities on Songz 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 Songz Automobile with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and China Satellite.
Diversification Opportunities for Songz Automobile and China Satellite
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air 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 Songz 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and China Satellite go up and down completely randomly.
Pair Corralation between Songz Automobile and China Satellite
Assuming the 90 days trading horizon Songz Automobile is expected to generate 2.57 times less return on investment than China Satellite. But when comparing it to its historical volatility, Songz Automobile Air is 2.25 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 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,736 in China Satellite Communications on August 25, 2024 and sell it today you would earn a total of 381.00 from holding China Satellite Communications or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. China Satellite Communications
Performance |
| Timeline |
| Songz Automobile Air |
| China Satellite Comm |
Songz Automobile and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and China Satellite
The main advantage of trading using opposite Songz Automobile and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz 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.| Songz Automobile vs. TongFu Microelectronics Co | Songz Automobile vs. Juneyao Airlines | Songz Automobile vs. Dhc Software Co | Songz Automobile vs. Epoxy Base Electronic |
| China Satellite vs. Songz Automobile Air | China Satellite vs. Hainan Mining Co | China Satellite vs. Uroica Mining Safety | China Satellite vs. Guangdong Silvere Sci |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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