Correlation Between China Satellite and Shanghai Yaoji
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By analyzing existing cross correlation between China Satellite Communications and Shanghai Yaoji Playing, you can compare the effects of market volatilities on China Satellite and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Shanghai Yaoji.
Diversification Opportunities for China Satellite and Shanghai Yaoji
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of China Satellite i.e., China Satellite and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between China Satellite and Shanghai Yaoji
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 0.9 times more return on investment than Shanghai Yaoji. However, China Satellite Communications is 1.11 times less risky than Shanghai Yaoji. It trades about 0.04 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.02 per unit of risk. If you would invest 1,799 in China Satellite Communications on September 12, 2024 and sell it today you would earn a total of 499.00 from holding China Satellite Communications or generate 27.74% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| China Satellite Comm |
| Shanghai Yaoji Playing |
China Satellite and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Shanghai Yaoji
The main advantage of trading using opposite China Satellite and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| China Satellite vs. Kweichow Moutai Co | China Satellite vs. Shenzhen Mindray Bio Medical | China Satellite vs. G bits Network Technology | China Satellite vs. Beijing Roborock Technology |
| Shanghai Yaoji vs. China Satellite Communications | Shanghai Yaoji vs. By health | Shanghai Yaoji vs. Yunnan Jianzhijia Health Chain | Shanghai Yaoji vs. China World Trade |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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