Correlation Between Ningbo Construction and China Satellite
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By analyzing existing cross correlation between Ningbo Construction Co and China Satellite Communications, you can compare the effects of market volatilities on Ningbo Construction and China Satellite 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 Ningbo Construction with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and China Satellite.
Diversification Opportunities for Ningbo Construction and China Satellite
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm and Ningbo Construction 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 Ningbo Construction Co are associated (or correlated) with China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and China Satellite go up and down completely randomly.
Pair Corralation between Ningbo Construction and China Satellite
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 0.85 times more return on investment than China Satellite. However, Ningbo Construction Co is 1.18 times less risky than China Satellite. It trades about -0.21 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.19 per unit of risk. If you would invest 458.00 in Ningbo Construction Co on October 30, 2024 and sell it today you would lose (39.00) from holding Ningbo Construction Co or give up 8.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. China Satellite Communications
Performance |
| Timeline |
| Ningbo Construction |
| China Satellite Comm |
Ningbo Construction and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and China Satellite
The main advantage of trading using opposite Ningbo Construction and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. China Construction Bank | Ningbo Construction vs. Agricultural Bank of | Ningbo Construction vs. Bank of China |
| China Satellite vs. Harbin Hatou Investment | China Satellite vs. Uroica Mining Safety | China Satellite vs. Beijing Mainstreets Investment | China Satellite vs. Shenyang Blue Silver |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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