Correlation Between China Satellite and Do Fluoride
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By analyzing existing cross correlation between China Satellite Communications and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on China Satellite and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Do Fluoride.
Diversification Opportunities for China Satellite and Do Fluoride
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and 002407 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of China Satellite i.e., China Satellite and Do Fluoride go up and down completely randomly.
Pair Corralation between China Satellite and Do Fluoride
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.79 times more return on investment than Do Fluoride. However, China Satellite is 1.79 times more volatile than Do Fluoride Chemicals Co. It trades about 0.25 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.16 per unit of risk. If you would invest 1,690 in China Satellite Communications on September 4, 2024 and sell it today you would earn a total of 610.00 from holding China Satellite Communications or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| China Satellite Comm |
| Do Fluoride Chemicals |
China Satellite and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Do Fluoride
The main advantage of trading using opposite China Satellite and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| China Satellite vs. New China Life | China Satellite vs. Ming Yang Smart | China Satellite vs. 159681 | China Satellite vs. 159005 |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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