Correlation Between Piotech and China Satellite
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By analyzing existing cross correlation between Piotech Inc A and China Satellite Communications, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and China Satellite.
Diversification Opportunities for Piotech and China Satellite
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A 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 Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and China Satellite go up and down completely randomly.
Pair Corralation between Piotech and China Satellite
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the China Satellite. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.39 times less risky than China Satellite. The stock trades about -0.53 of its potential returns per unit of risk. The China Satellite Communications is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 2,157 in China Satellite Communications on October 9, 2024 and sell it today you would lose (289.00) from holding China Satellite Communications or give up 13.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. China Satellite Communications
Performance |
| Timeline |
| Piotech Inc A |
| China Satellite Comm |
Piotech and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and China Satellite
The main advantage of trading using opposite Piotech and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Jiangsu Financial Leasing | Piotech vs. Linewell Software Co | Piotech vs. China Everbright Bank | Piotech vs. Glodon Software Co |
| China Satellite vs. Jiangsu Jinling Sports | China Satellite vs. Guangdong Shenglu Telecommunication | China Satellite vs. Allwin Telecommunication Co | China Satellite vs. Beijing Bewinner 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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