Correlation Between China Satellite and Inner Mongolia
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By analyzing existing cross correlation between China Satellite Communications and Inner Mongolia Furui, you can compare the effects of market volatilities on China Satellite and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Inner Mongolia.
Diversification Opportunities for China Satellite and Inner Mongolia
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Inner is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of China Satellite i.e., China Satellite and Inner Mongolia go up and down completely randomly.
Pair Corralation between China Satellite and Inner Mongolia
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 0.89 times more return on investment than Inner Mongolia. However, China Satellite Communications is 1.12 times less risky than Inner Mongolia. It trades about 0.16 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about 0.08 per unit of risk. If you would invest 1,979 in China Satellite Communications on December 6, 2024 and sell it today you would earn a total of 201.00 from holding China Satellite Communications or generate 10.16% 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. Inner Mongolia Furui
Performance |
| Timeline |
| China Satellite Comm |
| Inner Mongolia Furui |
China Satellite and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Inner Mongolia
The main advantage of trading using opposite China Satellite and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| China Satellite vs. CareRay Digital Medical | China Satellite vs. Nanjing Vishee Medical | China Satellite vs. Guangdong Transtek Medical | China Satellite vs. Heilongjiang Publishing Media |
| Inner Mongolia vs. HMTNew Technical | Inner Mongolia vs. iSoftStone Information Technology | Inner Mongolia vs. Olympic Circuit Technology | Inner Mongolia vs. Hubei Forbon Technology |
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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