Correlation Between Ye Chiu and China Satellite
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By analyzing existing cross correlation between Ye Chiu Metal and China Satellite Communications, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and China Satellite.
Diversification Opportunities for Ye Chiu and China Satellite
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and China Satellite go up and down completely randomly.
Pair Corralation between Ye Chiu and China Satellite
Assuming the 90 days trading horizon Ye Chiu Metal is expected to under-perform the China Satellite. But the stock apears to be less risky and, when comparing its historical volatility, Ye Chiu Metal is 1.33 times less risky than China Satellite. The stock trades about -0.01 of its potential returns per unit of risk. The China Satellite Communications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,201 in China Satellite Communications on September 3, 2024 and sell it today you would earn a total of 1,116 from holding China Satellite Communications or generate 92.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. China Satellite Communications
Performance |
| Timeline |
| Ye Chiu Metal |
| China Satellite Comm |
Ye Chiu and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and China Satellite
The main advantage of trading using opposite Ye Chiu and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co | Ye Chiu vs. Hoshine Silicon Ind |
| China Satellite vs. Gansu Jiu Steel | China Satellite vs. Ming Yang Smart | China Satellite vs. Aba Chemicals Corp | China Satellite vs. Loctek Ergonomic Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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