Correlation Between China Satellite and Guangdong Wens
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By analyzing existing cross correlation between China Satellite Communications and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on China Satellite and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Guangdong Wens.
Diversification Opportunities for China Satellite and Guangdong Wens
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Guangdong is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of China Satellite i.e., China Satellite and Guangdong Wens go up and down completely randomly.
Pair Corralation between China Satellite and Guangdong Wens
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.88 times more return on investment than Guangdong Wens. However, China Satellite is 1.88 times more volatile than Guangdong Wens Foodstuff. It trades about 0.09 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.06 per unit of risk. If you would invest 1,868 in China Satellite Communications on November 5, 2024 and sell it today you would earn a total of 51.00 from holding China Satellite Communications or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| China Satellite Comm |
| Guangdong Wens Foodstuff |
China Satellite and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Guangdong Wens
The main advantage of trading using opposite China Satellite and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| China Satellite vs. 360 Security Technology | China Satellite vs. Lier Chemical Co | China Satellite vs. Fiberhome Telecommunication Technologies | China Satellite vs. Jinsanjiang Silicon Material |
| Guangdong Wens vs. Xinjiang Qingsong Building | Guangdong Wens vs. UE Furniture Co | Guangdong Wens vs. Sanxiang Advanced Materials | Guangdong Wens vs. Luolai Home Textile |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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