Correlation Between China Satellite and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between China Satellite Communications and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on China Satellite and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Beijing HuaYuanYiTong.
Diversification Opportunities for China Satellite and Beijing HuaYuanYiTong
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of China Satellite i.e., China Satellite and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between China Satellite and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.28 times more return on investment than Beijing HuaYuanYiTong. However, China Satellite is 1.28 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.05 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.04 per unit of risk. If you would invest 1,696 in China Satellite Communications on November 3, 2024 and sell it today you would earn a total of 223.00 from holding China Satellite Communications or generate 13.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| China Satellite Comm |
| Beijing HuaYuanYiTong |
China Satellite and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Beijing HuaYuanYiTong
The main advantage of trading using opposite China Satellite and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| China Satellite vs. PetroChina Co Ltd | China Satellite vs. Industrial and Commercial | China Satellite vs. China Petroleum Chemical | China Satellite vs. China Construction Bank |
| Beijing HuaYuanYiTong vs. Industrial and Commercial | Beijing HuaYuanYiTong vs. Agricultural Bank of | Beijing HuaYuanYiTong vs. China Construction Bank | Beijing HuaYuanYiTong vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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