Correlation Between Kunshan Guoli and China Satellite
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By analyzing existing cross correlation between Kunshan Guoli Electronic and China Satellite Communications, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and China Satellite.
Diversification Opportunities for Kunshan Guoli and China Satellite
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kunshan and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic 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 Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and China Satellite go up and down completely randomly.
Pair Corralation between Kunshan Guoli and China Satellite
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to generate 0.59 times more return on investment than China Satellite. However, Kunshan Guoli Electronic is 1.7 times less risky than China Satellite. It trades about -0.07 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.06 per unit of risk. If you would invest 4,750 in Kunshan Guoli Electronic on September 13, 2024 and sell it today you would lose (288.00) from holding Kunshan Guoli Electronic or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. China Satellite Communications
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| China Satellite Comm |
Kunshan Guoli and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and China Satellite
The main advantage of trading using opposite Kunshan Guoli and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
| China Satellite vs. Industrial and Commercial | China Satellite vs. China Construction Bank | China Satellite vs. Agricultural Bank of | China Satellite vs. Bank of China |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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