Correlation Between China Satellite and Tibet Huayu
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By analyzing existing cross correlation between China Satellite Communications and Tibet Huayu Mining, you can compare the effects of market volatilities on China Satellite and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Tibet Huayu.
Diversification Opportunities for China Satellite and Tibet Huayu
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Tibet is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of China Satellite i.e., China Satellite and Tibet Huayu go up and down completely randomly.
Pair Corralation between China Satellite and Tibet Huayu
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.0 times more return on investment than Tibet Huayu. However, China Satellite is 1.0 times more volatile than Tibet Huayu Mining. It trades about 0.04 of its potential returns per unit of risk. Tibet Huayu Mining 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Tibet Huayu Mining
Performance |
| Timeline |
| China Satellite Comm |
| Tibet Huayu Mining |
China Satellite and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Tibet Huayu
The main advantage of trading using opposite China Satellite and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Sanbo Hospital Management | Tibet Huayu vs. Chengdu Spaceon Electronics | Tibet Huayu vs. AVIC Fund Management | Tibet Huayu vs. Jiangsu Yueda Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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