Correlation Between China Satellite and Southchip Semiconductor
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By analyzing existing cross correlation between China Satellite Communications and Southchip Semiconductor Technology, you can compare the effects of market volatilities on China Satellite and Southchip Semiconductor 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 Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Southchip Semiconductor.
Diversification Opportunities for China Satellite and Southchip Semiconductor
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Southchip is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor 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 Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of China Satellite i.e., China Satellite and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between China Satellite and Southchip Semiconductor
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 0.98 times more return on investment than Southchip Semiconductor. However, China Satellite Communications is 1.02 times less risky than Southchip Semiconductor. It trades about 0.12 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.1 per unit of risk. If you would invest 1,414 in China Satellite Communications on October 18, 2024 and sell it today you would earn a total of 536.00 from holding China Satellite Communications or generate 37.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| China Satellite Comm |
| Southchip Semiconductor |
China Satellite and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Southchip Semiconductor
The main advantage of trading using opposite China Satellite and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Southchip Semiconductor 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| China Satellite vs. Shenzhen Noposion Agrochemicals | China Satellite vs. Sichuan Yahua Industrial | China Satellite vs. Jinhui Liquor Co | China Satellite vs. Vats Liquor Chain |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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