Correlation Between China Satellite and Qiming Information
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By analyzing existing cross correlation between China Satellite Communications and Qiming Information Technology, you can compare the effects of market volatilities on China Satellite and Qiming 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Qiming Information.
Diversification Opportunities for China Satellite and Qiming Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Qiming is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of China Satellite i.e., China Satellite and Qiming Information go up and down completely randomly.
Pair Corralation between China Satellite and Qiming Information
Assuming the 90 days trading horizon China Satellite is expected to generate 1.45 times less return on investment than Qiming Information. But when comparing it to its historical volatility, China Satellite Communications is 1.37 times less risky than Qiming Information. It trades about 0.03 of its potential returns per unit of risk. Qiming Information Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,542 in Qiming Information Technology on October 16, 2024 and sell it today you would earn a total of 387.00 from holding Qiming Information Technology or generate 25.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Qiming Information Technology
Performance |
| Timeline |
| China Satellite Comm |
| Qiming Information |
China Satellite and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Qiming Information
The main advantage of trading using opposite China Satellite and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Qiming 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| China Satellite vs. Nanxing Furniture Machinery | China Satellite vs. Huasi Agricultural Development | China Satellite vs. Ningbo Construction Co | China Satellite vs. Jinlong Machinery Electronic |
| Qiming Information vs. Bank of Communications | Qiming Information vs. China Satellite Communications | Qiming Information vs. Beijing Bewinner Communications | Qiming Information vs. Wintao Communications Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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