Correlation Between Dongxing Sec and China Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongxing Sec Co and China Satellite Communications, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and China Satellite.
Diversification Opportunities for Dongxing Sec and China Satellite
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and China is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and China Satellite go up and down completely randomly.
Pair Corralation between Dongxing Sec and China Satellite
Assuming the 90 days trading horizon Dongxing Sec Co is expected to under-perform the China Satellite. But the stock apears to be less risky and, when comparing its historical volatility, Dongxing Sec Co is 1.11 times less risky than China Satellite. The stock trades about -0.3 of its potential returns per unit of risk. The China Satellite Communications is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 2,157 in China Satellite Communications on October 9, 2024 and sell it today you would lose (289.00) from holding China Satellite Communications or give up 13.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. China Satellite Communications
Performance |
| Timeline |
| Dongxing Sec |
| China Satellite Comm |
Dongxing Sec and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and China Satellite
The main advantage of trading using opposite Dongxing Sec and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Fujian Longzhou Transportation | Dongxing Sec vs. Sichuan Fulin Transportation | Dongxing Sec vs. HeNan Splendor Science | Dongxing Sec vs. Lecron Energy Saving |
| China Satellite vs. Jiangsu Jinling Sports | China Satellite vs. Guangdong Shenglu Telecommunication | China Satellite vs. Allwin Telecommunication Co | China Satellite vs. Beijing Bewinner Communications |
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..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |