Correlation Between China Satellite and SUNSEA Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Satellite Communications and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on China Satellite and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and SUNSEA Telecommunicatio.
Diversification Opportunities for China Satellite and SUNSEA Telecommunicatio
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and SUNSEA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of China Satellite i.e., China Satellite and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between China Satellite and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.7 times more return on investment than SUNSEA Telecommunicatio. However, China Satellite is 1.7 times more volatile than SUNSEA Telecommunications Co. It trades about 0.14 of its potential returns per unit of risk. SUNSEA Telecommunications Co is currently generating about -0.12 per unit of risk. If you would invest 1,733 in China Satellite Communications on August 29, 2024 and sell it today you would earn a total of 284.00 from holding China Satellite Communications or generate 16.39% 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. SUNSEA Telecommunications Co
Performance |
| Timeline |
| China Satellite Comm |
| SUNSEA Telecommunicatio |
China Satellite and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and SUNSEA Telecommunicatio
The main advantage of trading using opposite China Satellite and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| China Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. Aluminum Corp of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |