Correlation Between China Satellite and Changchun Engley
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By analyzing existing cross correlation between China Satellite Communications and Changchun Engley Automobile, you can compare the effects of market volatilities on China Satellite and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Changchun Engley.
Diversification Opportunities for China Satellite and Changchun Engley
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Changchun is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of China Satellite i.e., China Satellite and Changchun Engley go up and down completely randomly.
Pair Corralation between China Satellite and Changchun Engley
Assuming the 90 days trading horizon China Satellite Communications is expected to under-perform the Changchun Engley. In addition to that, China Satellite is 1.04 times more volatile than Changchun Engley Automobile. It trades about -0.29 of its total potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.23 per unit of volatility. If you would invest 430.00 in Changchun Engley Automobile on October 7, 2024 and sell it today you would lose (54.00) from holding Changchun Engley Automobile or give up 12.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Changchun Engley Automobile
Performance |
| Timeline |
| China Satellite Comm |
| Changchun Engley Aut |
China Satellite and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Changchun Engley
The main advantage of trading using opposite China Satellite and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| China Satellite vs. China Life Insurance | China Satellite vs. Cinda Securities Co | China Satellite vs. Piotech Inc A | China Satellite vs. Dongxing Sec Co |
| Changchun Engley vs. Agricultural Bank of | Changchun Engley vs. Postal Savings Bank | Changchun Engley vs. Gansu Jiu Steel | Changchun Engley vs. Shandong Mining Machinery |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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