Correlation Between China Satellite and Emdoor Information
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By analyzing existing cross correlation between China Satellite Communications and Emdoor Information Co, you can compare the effects of market volatilities on China Satellite and Emdoor Information 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 China Satellite with a short position of Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Emdoor Information.
Diversification Opportunities for China Satellite and Emdoor Information
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Emdoor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information and China Satellite 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 China Satellite Communications are associated (or correlated) with Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of China Satellite i.e., China Satellite and Emdoor Information go up and down completely randomly.
Pair Corralation between China Satellite and Emdoor Information
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 0.58 times more return on investment than Emdoor Information. However, China Satellite Communications is 1.71 times less risky than Emdoor Information. It trades about 0.24 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.07 per unit of risk. If you would invest 1,905 in China Satellite Communications on November 8, 2024 and sell it today you would earn a total of 198.00 from holding China Satellite Communications or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Emdoor Information Co
Performance |
| Timeline |
| China Satellite Comm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Emdoor Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
China Satellite and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Emdoor Information
The main advantage of trading using opposite China Satellite and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.The idea behind China Satellite Communications and Emdoor Information Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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