Correlation Between Xinhu Zhongbao and China Satellite
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By analyzing existing cross correlation between Xinhu Zhongbao Co and China Satellite Communications, you can compare the effects of market volatilities on Xinhu Zhongbao 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 Xinhu Zhongbao with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhu Zhongbao and China Satellite.
Diversification Opportunities for Xinhu Zhongbao and China Satellite
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinhu and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xinhu Zhongbao 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 Xinhu Zhongbao 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 Xinhu Zhongbao 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 Xinhu Zhongbao i.e., Xinhu Zhongbao and China Satellite go up and down completely randomly.
Pair Corralation between Xinhu Zhongbao and China Satellite
Assuming the 90 days trading horizon Xinhu Zhongbao Co is expected to generate 0.78 times more return on investment than China Satellite. However, Xinhu Zhongbao Co is 1.28 times less risky than China Satellite. It trades about -0.14 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.2 per unit of risk. If you would invest 302.00 in Xinhu Zhongbao Co on October 25, 2024 and sell it today you would lose (17.00) from holding Xinhu Zhongbao Co or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhu Zhongbao Co vs. China Satellite Communications
Performance |
| Timeline |
| Xinhu Zhongbao |
| China Satellite Comm |
Xinhu Zhongbao and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhu Zhongbao and China Satellite
The main advantage of trading using opposite Xinhu Zhongbao and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhu Zhongbao 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.| Xinhu Zhongbao vs. Haima Automobile Group | Xinhu Zhongbao vs. Songz Automobile Air | Xinhu Zhongbao vs. Guangzhou Automobile Group | Xinhu Zhongbao vs. Nanxing Furniture Machinery |
| China Satellite vs. Industrial and Commercial | China Satellite vs. Agricultural Bank of | China Satellite vs. China Construction Bank | 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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