Correlation Between Shenyang Blue and China Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Blue Silver and China Satellite Communications, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and China Satellite.
Diversification Opportunities for Shenyang Blue and China Satellite
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenyang and China is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and China Satellite go up and down completely randomly.
Pair Corralation between Shenyang Blue and China Satellite
Assuming the 90 days trading horizon Shenyang Blue is expected to generate 1.12 times less return on investment than China Satellite. In addition to that, Shenyang Blue is 1.13 times more volatile than China Satellite Communications. It trades about 0.07 of its total potential returns per unit of risk. China Satellite Communications is currently generating about 0.09 per unit of volatility. If you would invest 1,868 in China Satellite Communications on November 7, 2024 and sell it today you would earn a total of 51.00 from holding China Satellite Communications or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. China Satellite Communications
Performance |
| Timeline |
| Shenyang Blue Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Satellite Comm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenyang Blue and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and China Satellite
The main advantage of trading using opposite Shenyang Blue and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.The idea behind Shenyang Blue Silver and China Satellite Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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