Correlation Between China Satellite and Northern United
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Satellite Communications and Northern United Publishing, you can compare the effects of market volatilities on China Satellite and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Northern United.
Diversification Opportunities for China Satellite and Northern United
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Northern is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of China Satellite i.e., China Satellite and Northern United go up and down completely randomly.
Pair Corralation between China Satellite and Northern United
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 2.79 times more return on investment than Northern United. However, China Satellite is 2.79 times more volatile than Northern United Publishing. It trades about 0.23 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.25 per unit of risk. If you would invest 1,690 in China Satellite Communications on September 5, 2024 and sell it today you would earn a total of 556.00 from holding China Satellite Communications or generate 32.9% 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. Northern United Publishing
Performance |
| Timeline |
| China Satellite Comm |
| Northern United Publ |
China Satellite and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Northern United
The main advantage of trading using opposite China Satellite and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| China Satellite vs. Shengda Mining Co | China Satellite vs. Western Metal Materials | China Satellite vs. Rising Nonferrous Metals | China Satellite vs. Hainan Mining Co |
| Northern United vs. Double Medical Technology | Northern United vs. Markor International Home | Northern United vs. Der International Home | Northern United vs. Kontour Medical Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |