Correlation Between China Satellite and Fujian Oriental
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By analyzing existing cross correlation between China Satellite Communications and Fujian Oriental Silver, you can compare the effects of market volatilities on China Satellite and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Fujian Oriental.
Diversification Opportunities for China Satellite and Fujian Oriental
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Fujian is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of China Satellite i.e., China Satellite and Fujian Oriental go up and down completely randomly.
Pair Corralation between China Satellite and Fujian Oriental
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 0.92 times more return on investment than Fujian Oriental. However, China Satellite Communications is 1.09 times less risky than Fujian Oriental. It trades about 0.04 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.03 per unit of risk. If you would invest 1,239 in China Satellite Communications on October 15, 2024 and sell it today you would earn a total of 646.00 from holding China Satellite Communications or generate 52.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Fujian Oriental Silver
Performance |
| Timeline |
| China Satellite Comm |
| Fujian Oriental Silver |
China Satellite and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Fujian Oriental
The main advantage of trading using opposite China Satellite and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| China Satellite vs. Dymatic Chemicals | China Satellite vs. Yingde Greatchem Chemicals | China Satellite vs. Caihong Display Devices | China Satellite vs. Anhui Jianghuai Automobile |
| Fujian Oriental vs. Gan Yuan Foods | Fujian Oriental vs. Tibet Huayu Mining | Fujian Oriental vs. Bosera CMSK Industrial | Fujian Oriental vs. Chengtun Mining Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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