Correlation Between Beijing Roborock and China Satellite
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By analyzing existing cross correlation between Beijing Roborock Technology and China Satellite Communications, you can compare the effects of market volatilities on Beijing Roborock 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 Beijing Roborock with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and China Satellite.
Diversification Opportunities for Beijing Roborock and China Satellite
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and China is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology 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 Beijing Roborock 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 Beijing Roborock Technology 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 Beijing Roborock i.e., Beijing Roborock and China Satellite go up and down completely randomly.
Pair Corralation between Beijing Roborock and China Satellite
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 0.53 times more return on investment than China Satellite. However, Beijing Roborock Technology is 1.89 times less risky than China Satellite. It trades about 0.02 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.07 per unit of risk. If you would invest 22,308 in Beijing Roborock Technology on September 13, 2024 and sell it today you would earn a total of 143.00 from holding Beijing Roborock Technology or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. China Satellite Communications
Performance |
| Timeline |
| Beijing Roborock Tec |
| China Satellite Comm |
Beijing Roborock and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and China Satellite
The main advantage of trading using opposite Beijing Roborock and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock 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.| Beijing Roborock vs. Sino Platinum Metals Co | Beijing Roborock vs. Hengli Industrial Development | Beijing Roborock vs. Hang Xiao Steel | Beijing Roborock vs. Qiaoyin Environmental Tech |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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