Correlation Between SatixFy Communications and China Health
Can any of the company-specific risk be diversified away by investing in both SatixFy Communications and China Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SatixFy Communications and China Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SatixFy Communications and China Health Management, you can compare the effects of market volatilities on SatixFy Communications and China Health 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 SatixFy Communications with a short position of China Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SatixFy Communications and China Health.
Diversification Opportunities for SatixFy Communications and China Health
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SatixFy and China is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SatixFy Communications and China Health Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Management and SatixFy Communications 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 SatixFy Communications are associated (or correlated) with China Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Management has no effect on the direction of SatixFy Communications i.e., SatixFy Communications and China Health go up and down completely randomly.
Pair Corralation between SatixFy Communications and China Health
Given the investment horizon of 90 days SatixFy Communications is expected to generate 0.51 times more return on investment than China Health. However, SatixFy Communications is 1.96 times less risky than China Health. It trades about 0.1 of its potential returns per unit of risk. China Health Management is currently generating about 0.04 per unit of risk. If you would invest 41.00 in SatixFy Communications on October 21, 2024 and sell it today you would earn a total of 101.00 from holding SatixFy Communications or generate 246.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.31% |
| Values | Daily Returns |
SatixFy Communications vs. China Health Management
Performance |
| Timeline |
| SatixFy Communications |
| China Health Management |
SatixFy Communications and China Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SatixFy Communications and China Health
The main advantage of trading using opposite SatixFy Communications and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SatixFy Communications position performs unexpectedly, China Health 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 Health will offset losses from the drop in China Health's long position.| SatixFy Communications vs. Actelis Networks | SatixFy Communications vs. ClearOne | SatixFy Communications vs. Siyata Mobile | SatixFy Communications vs. Mobilicom Limited Warrants |
| China Health vs. Absolute Health and | China Health vs. Embrace Change Acquisition | China Health vs. Supurva Healthcare Group | China Health vs. TransAKT |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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