Correlation Between China Satellite and Jiangsu Financial
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By analyzing existing cross correlation between China Satellite Communications and Jiangsu Financial Leasing, you can compare the effects of market volatilities on China Satellite and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Jiangsu Financial.
Diversification Opportunities for China Satellite and Jiangsu Financial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Jiangsu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of China Satellite i.e., China Satellite and Jiangsu Financial go up and down completely randomly.
Pair Corralation between China Satellite and Jiangsu Financial
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 2.0 times more return on investment than Jiangsu Financial. However, China Satellite is 2.0 times more volatile than Jiangsu Financial Leasing. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.05 per unit of risk. If you would invest 1,174 in China Satellite Communications on September 28, 2024 and sell it today you would earn a total of 969.00 from holding China Satellite Communications or generate 82.54% 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. Jiangsu Financial Leasing
Performance |
| Timeline |
| China Satellite Comm |
| Jiangsu Financial Leasing |
China Satellite and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Jiangsu Financial
The main advantage of trading using opposite China Satellite and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| China Satellite vs. Dongfeng Automobile Co | China Satellite vs. Wintao Communications Co | China Satellite vs. Eastern Communications Co | China Satellite vs. Leaguer Shenzhen MicroElectronics |
| Jiangsu Financial vs. China Sports Industry | Jiangsu Financial vs. China Satellite Communications | Jiangsu Financial vs. Caihong Display Devices | Jiangsu Financial vs. Railway Signal Communication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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