Correlation Between China Satellite and Huaibei Mining
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By analyzing existing cross correlation between China Satellite Communications and Huaibei Mining Holdings, you can compare the effects of market volatilities on China Satellite and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Huaibei Mining.
Diversification Opportunities for China Satellite and Huaibei Mining
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Huaibei is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of China Satellite i.e., China Satellite and Huaibei Mining go up and down completely randomly.
Pair Corralation between China Satellite and Huaibei Mining
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 2.52 times more return on investment than Huaibei Mining. However, China Satellite is 2.52 times more volatile than Huaibei Mining Holdings. It trades about 0.08 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.13 per unit of risk. If you would invest 2,017 in China Satellite Communications on September 27, 2024 and sell it today you would earn a total of 103.00 from holding China Satellite Communications or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Huaibei Mining Holdings
Performance |
| Timeline |
| China Satellite Comm |
| Huaibei Mining Holdings |
China Satellite and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Huaibei Mining
The main advantage of trading using opposite China Satellite and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| China Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. COL Digital Publishing |
| Huaibei Mining vs. Zijin Mining Group | Huaibei Mining vs. Baoshan Iron Steel | Huaibei Mining vs. Shandong Gold Mining | Huaibei Mining vs. Rongsheng Petrochemical Co |
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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