Correlation Between China Satellite and King Strong
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By analyzing existing cross correlation between China Satellite Communications and King Strong New Material, you can compare the effects of market volatilities on China Satellite and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and King Strong.
Diversification Opportunities for China Satellite and King Strong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and King is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of China Satellite i.e., China Satellite and King Strong go up and down completely randomly.
Pair Corralation between China Satellite and King Strong
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.04 times more return on investment than King Strong. However, China Satellite is 1.04 times more volatile than King Strong New Material. It trades about 0.2 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.19 per unit of risk. If you would invest 1,440 in China Satellite Communications on September 4, 2024 and sell it today you would earn a total of 860.00 from holding China Satellite Communications or generate 59.72% 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. King Strong New Material
Performance |
| Timeline |
| China Satellite Comm |
| King Strong New |
China Satellite and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and King Strong
The main advantage of trading using opposite China Satellite and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| China Satellite vs. New China Life | China Satellite vs. Ming Yang Smart | China Satellite vs. 159681 | China Satellite vs. 159005 |
| King Strong vs. Anhui Deli Household | King Strong vs. Jiujiang Shanshui Technology | King Strong vs. Sunwave Communications Co | King Strong vs. China Satellite Communications |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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