Correlation Between Shanghai Jin and China Satellite
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By analyzing existing cross correlation between Shanghai Jin Jiang and China Satellite Communications, you can compare the effects of market volatilities on Shanghai Jin 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 Shanghai Jin with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jin and China Satellite.
Diversification Opportunities for Shanghai Jin and China Satellite
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jin Jiang 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 Shanghai Jin 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 Shanghai Jin Jiang 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 Shanghai Jin i.e., Shanghai Jin and China Satellite go up and down completely randomly.
Pair Corralation between Shanghai Jin and China Satellite
Assuming the 90 days trading horizon Shanghai Jin Jiang is expected to generate 0.32 times more return on investment than China Satellite. However, Shanghai Jin Jiang is 3.08 times less risky than China Satellite. It trades about -0.04 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.18 per unit of risk. If you would invest 151.00 in Shanghai Jin Jiang on October 30, 2024 and sell it today you would lose (2.00) from holding Shanghai Jin Jiang or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Shanghai Jin Jiang vs. China Satellite Communications
Performance |
| Timeline |
| Shanghai Jin Jiang |
| China Satellite Comm |
Shanghai Jin and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jin and China Satellite
The main advantage of trading using opposite Shanghai Jin and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jin 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.| Shanghai Jin vs. Jahen Household Products | Shanghai Jin vs. Chengtun Mining Group | Shanghai Jin vs. Anhui Deli Household | Shanghai Jin vs. Gem Year Industrial Co |
| China Satellite vs. Harbin Hatou Investment | China Satellite vs. Uroica Mining Safety | China Satellite vs. Beijing Mainstreets Investment | China Satellite vs. Shenyang Blue Silver |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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