Correlation Between Fujian Oriental and China Satellite
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By analyzing existing cross correlation between Fujian Oriental Silver and China Satellite Communications, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and China Satellite.
Diversification Opportunities for Fujian Oriental and China Satellite
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and China is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental 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 Fujian Oriental 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 Fujian Oriental 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 Fujian Oriental i.e., Fujian Oriental and China Satellite go up and down completely randomly.
Pair Corralation between Fujian Oriental and China Satellite
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the China Satellite. In addition to that, Fujian Oriental is 1.06 times more volatile than China Satellite Communications. It trades about -0.13 of its total potential returns per unit of risk. China Satellite Communications is currently generating about 0.08 per unit of volatility. If you would invest 2,017 in China Satellite Communications on September 27, 2024 and sell it today you would earn a total of 103.00 from holding China Satellite Communications or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. China Satellite Communications
Performance |
| Timeline |
| Fujian Oriental Silver |
| China Satellite Comm |
Fujian Oriental and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and China Satellite
The main advantage of trading using opposite Fujian Oriental and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
| China Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. COL Digital Publishing |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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