Correlation Between China Satellite and Xinjiang Baodi
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By analyzing existing cross correlation between China Satellite Communications and Xinjiang Baodi Mining, you can compare the effects of market volatilities on China Satellite and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Xinjiang Baodi.
Diversification Opportunities for China Satellite and Xinjiang Baodi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xinjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of China Satellite i.e., China Satellite and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between China Satellite and Xinjiang Baodi
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.55 times more return on investment than Xinjiang Baodi. However, China Satellite is 1.55 times more volatile than Xinjiang Baodi Mining. It trades about 0.16 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.13 per unit of risk. If you would invest 1,483 in China Satellite Communications on August 25, 2024 and sell it today you would earn a total of 634.00 from holding China Satellite Communications or generate 42.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| China Satellite Comm |
| Xinjiang Baodi Mining |
China Satellite and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Xinjiang Baodi
The main advantage of trading using opposite China Satellite and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi's long position.| China Satellite vs. Songz Automobile Air | China Satellite vs. Hainan Mining Co | China Satellite vs. Uroica Mining Safety | China Satellite vs. Guangdong Silvere Sci |
| Xinjiang Baodi vs. Zijin Mining Group | Xinjiang Baodi vs. Wanhua Chemical Group | Xinjiang Baodi vs. Baoshan Iron Steel | Xinjiang Baodi vs. Shandong Gold Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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