Correlation Between Shenzhen Kexin and China Satellite
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By analyzing existing cross correlation between Shenzhen Kexin Communication and China Satellite Communications, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and China Satellite.
Diversification Opportunities for Shenzhen Kexin and China Satellite
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication 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 Shenzhen Kexin 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 Shenzhen Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and China Satellite go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and China Satellite
Assuming the 90 days trading horizon Shenzhen Kexin is expected to generate 1.47 times less return on investment than China Satellite. In addition to that, Shenzhen Kexin is 1.12 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 0.11 per unit of volatility. If you would invest 1,533 in China Satellite Communications on August 31, 2024 and sell it today you would earn a total of 784.00 from holding China Satellite Communications or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. China Satellite Communications
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| China Satellite Comm |
Shenzhen Kexin and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and China Satellite
The main advantage of trading using opposite Shenzhen Kexin and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. NAURA Technology Group | Shenzhen Kexin vs. APT Medical | Shenzhen Kexin vs. Contemporary Amperex Technology |
| China Satellite vs. BYD Co Ltd | China Satellite vs. Agricultural Bank of | China Satellite vs. Industrial and Commercial | China Satellite vs. China State Construction |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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