Correlation Between China Satellite and Tongyu Communication
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By analyzing existing cross correlation between China Satellite Communications and Tongyu Communication, you can compare the effects of market volatilities on China Satellite and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Tongyu Communication.
Diversification Opportunities for China Satellite and Tongyu Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Tongyu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of China Satellite i.e., China Satellite and Tongyu Communication go up and down completely randomly.
Pair Corralation between China Satellite and Tongyu Communication
Assuming the 90 days trading horizon China Satellite is expected to generate 1.41 times less return on investment than Tongyu Communication. In addition to that, China Satellite is 1.04 times more volatile than Tongyu Communication. It trades about 0.16 of its total potential returns per unit of risk. Tongyu Communication is currently generating about 0.24 per unit of volatility. If you would invest 1,043 in Tongyu Communication on August 25, 2024 and sell it today you would earn a total of 722.00 from holding Tongyu Communication or generate 69.22% 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. Tongyu Communication
Performance |
| Timeline |
| China Satellite Comm |
| Tongyu Communication |
China Satellite and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Tongyu Communication
The main advantage of trading using opposite China Satellite and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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