Correlation Between China Satellite and Luenmei Quantum
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By analyzing existing cross correlation between China Satellite Communications and Luenmei Quantum Co, you can compare the effects of market volatilities on China Satellite and Luenmei Quantum 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 Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Luenmei Quantum.
Diversification Opportunities for China Satellite and Luenmei Quantum
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Luenmei is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum 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 Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of China Satellite i.e., China Satellite and Luenmei Quantum go up and down completely randomly.
Pair Corralation between China Satellite and Luenmei Quantum
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.96 times more return on investment than Luenmei Quantum. However, China Satellite is 1.96 times more volatile than Luenmei Quantum Co. It trades about 0.06 of its potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.01 per unit of risk. If you would invest 1,201 in China Satellite Communications on September 3, 2024 and sell it today you would earn a total of 1,116 from holding China Satellite Communications or generate 92.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Luenmei Quantum Co
Performance |
| Timeline |
| China Satellite Comm |
| Luenmei Quantum |
China Satellite and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Luenmei Quantum
The main advantage of trading using opposite China Satellite and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| China Satellite vs. Gansu Jiu Steel | China Satellite vs. Ming Yang Smart | China Satellite vs. Aba Chemicals Corp | China Satellite vs. Loctek Ergonomic Technology |
| Luenmei Quantum vs. Sanbo Hospital Management | Luenmei Quantum vs. SUNSEA Telecommunications Co | Luenmei Quantum vs. China Satellite Communications | Luenmei Quantum vs. Shanghai CEO Environmental |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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