Correlation Between China Satellite and Shanghai Jin
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By analyzing existing cross correlation between China Satellite Communications and Shanghai Jin Jiang, you can compare the effects of market volatilities on China Satellite and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Shanghai Jin.
Diversification Opportunities for China Satellite and Shanghai Jin
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Shanghai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of China Satellite i.e., China Satellite and Shanghai Jin go up and down completely randomly.
Pair Corralation between China Satellite and Shanghai Jin
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 2.03 times more return on investment than Shanghai Jin. However, China Satellite is 2.03 times more volatile than Shanghai Jin Jiang. It trades about 0.05 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.04 per unit of risk. If you would invest 1,239 in China Satellite Communications on October 16, 2024 and sell it today you would earn a total of 753.00 from holding China Satellite Communications or generate 60.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. Shanghai Jin Jiang
Performance |
| Timeline |
| China Satellite Comm |
| Shanghai Jin Jiang |
China Satellite and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and Shanghai Jin
The main advantage of trading using opposite China Satellite and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| China Satellite vs. Nanxing Furniture Machinery | China Satellite vs. Huasi Agricultural Development | China Satellite vs. Ningbo Construction Co | China Satellite vs. Jinlong Machinery Electronic |
| Shanghai Jin vs. China Satellite Communications | Shanghai Jin vs. Tongyu Communication | Shanghai Jin vs. Cansino Biologics | Shanghai Jin vs. Bank of Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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