Correlation Between China Satellite and LianChuang Electronic
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By analyzing existing cross correlation between China Satellite Communications and LianChuang Electronic Technology, you can compare the effects of market volatilities on China Satellite and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and LianChuang Electronic.
Diversification Opportunities for China Satellite and LianChuang Electronic
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and LianChuang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of China Satellite i.e., China Satellite and LianChuang Electronic go up and down completely randomly.
Pair Corralation between China Satellite and LianChuang Electronic
Assuming the 90 days trading horizon China Satellite is expected to generate 144.81 times less return on investment than LianChuang Electronic. But when comparing it to its historical volatility, China Satellite Communications is 1.95 times less risky than LianChuang Electronic. It trades about 0.0 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 923.00 in LianChuang Electronic Technology on December 4, 2024 and sell it today you would earn a total of 340.00 from holding LianChuang Electronic Technology or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| China Satellite Comm |
| LianChuang Electronic |
China Satellite and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and LianChuang Electronic
The main advantage of trading using opposite China Satellite and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| China Satellite vs. Orinko Advanced Plastics | China Satellite vs. Shandong Huifa Foodstuff | China Satellite vs. GRIPM Advanced Materials | China Satellite vs. Ping An Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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