Correlation Between Tianjin Silvery and China Satellite
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By analyzing existing cross correlation between Tianjin Silvery Dragon and China Satellite Communications, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and China Satellite.
Diversification Opportunities for Tianjin Silvery and China Satellite
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon 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 Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and China Satellite go up and down completely randomly.
Pair Corralation between Tianjin Silvery and China Satellite
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to generate 1.03 times more return on investment than China Satellite. However, Tianjin Silvery is 1.03 times more volatile than China Satellite Communications. It trades about 0.23 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.08 per unit of risk. If you would invest 546.00 in Tianjin Silvery Dragon on September 27, 2024 and sell it today you would earn a total of 96.00 from holding Tianjin Silvery Dragon or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. China Satellite Communications
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| China Satellite Comm |
Tianjin Silvery and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and China Satellite
The main advantage of trading using opposite Tianjin Silvery and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.| Tianjin Silvery vs. Wanhua Chemical Group | Tianjin Silvery vs. Shandong Gold Mining | Tianjin Silvery vs. Rongsheng Petrochemical Co | Tianjin Silvery vs. Inner Mongolia BaoTou |
| China Satellite vs. Chengdu Kanghua Biological | China Satellite vs. Beijing Wantai Biological | China Satellite vs. Suzhou Novoprotein Scientific | China Satellite vs. COL Digital Publishing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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