Correlation Between CICT Mobile and China Satellite
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By analyzing existing cross correlation between CICT Mobile Communication and China Satellite Communications, you can compare the effects of market volatilities on CICT Mobile 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 CICT Mobile with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and China Satellite.
Diversification Opportunities for CICT Mobile and China Satellite
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication 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 CICT Mobile 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 CICT Mobile Communication 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 CICT Mobile i.e., CICT Mobile and China Satellite go up and down completely randomly.
Pair Corralation between CICT Mobile and China Satellite
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the China Satellite. But the stock apears to be less risky and, when comparing its historical volatility, CICT Mobile Communication is 2.0 times less risky than China Satellite. The stock trades about -0.14 of its potential returns per unit of risk. The China Satellite Communications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,468 in China Satellite Communications on September 12, 2024 and sell it today you would lose (170.00) from holding China Satellite Communications or give up 6.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. China Satellite Communications
Performance |
| Timeline |
| CICT Mobile Communication |
| China Satellite Comm |
CICT Mobile and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and China Satellite
The main advantage of trading using opposite CICT Mobile and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile 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.| CICT Mobile vs. Gansu Jiu Steel | CICT Mobile vs. Shandong Mining Machinery | CICT Mobile vs. Aba Chemicals Corp | CICT Mobile vs. BlueFocus Communication Group |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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