Correlation Between Northern United and China Satellite
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By analyzing existing cross correlation between Northern United Publishing and China Satellite Communications, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and China Satellite.
Diversification Opportunities for Northern United and China Satellite
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and China Satellite go up and down completely randomly.
Pair Corralation between Northern United and China Satellite
Assuming the 90 days trading horizon Northern United is expected to generate 2.56 times less return on investment than China Satellite. But when comparing it to its historical volatility, Northern United Publishing is 1.06 times less risky than China Satellite. It trades about 0.03 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,123 in China Satellite Communications on September 12, 2024 and sell it today you would earn a total of 1,175 from holding China Satellite Communications or generate 104.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. China Satellite Communications
Performance |
| Timeline |
| Northern United Publ |
| China Satellite Comm |
Northern United and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and China Satellite
The main advantage of trading using opposite Northern United and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Kweichow Moutai Co | Northern United vs. Shenzhen Mindray Bio Medical | Northern United vs. G bits Network Technology | Northern United vs. Beijing Roborock Technology |
| China Satellite vs. Kweichow Moutai Co | China Satellite vs. Shenzhen Mindray Bio Medical | China Satellite vs. G bits Network Technology | China Satellite vs. Beijing Roborock 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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