Correlation Between China Satellite and Huasi Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Satellite Communications and Huasi Agricultural Development, you can compare the effects of market volatilities on China Satellite and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Huasi Agricultural.
Diversification Opportunities for China Satellite and Huasi Agricultural
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Huasi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of China Satellite i.e., China Satellite and Huasi Agricultural go up and down completely randomly.
Pair Corralation between China Satellite and Huasi Agricultural
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 2.26 times more return on investment than Huasi Agricultural. However, China Satellite is 2.26 times more volatile than Huasi Agricultural Development. It trades about 0.19 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.11 per unit of risk. If you would invest 1,728 in China Satellite Communications on August 26, 2024 and sell it today you would earn a total of 389.00 from holding China Satellite Communications or generate 22.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Huasi Agricultural Development
Performance |
| Timeline |
| China Satellite Comm |
| Huasi Agricultural |
China Satellite and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Huasi Agricultural
The main advantage of trading using opposite China Satellite and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| China Satellite vs. Songz Automobile Air | China Satellite vs. Hainan Mining Co | China Satellite vs. Uroica Mining Safety | China Satellite vs. Guangdong Silvere Sci |
| Huasi Agricultural vs. Chengtun Mining Group | Huasi Agricultural vs. China Satellite Communications | Huasi Agricultural vs. Xinjiang Baodi Mining | Huasi Agricultural vs. Uroica Mining Safety |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |