Correlation Between Zhongshan Public and China Satellite
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By analyzing existing cross correlation between Zhongshan Public Utilities and China Satellite Communications, you can compare the effects of market volatilities on Zhongshan Public 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 Zhongshan Public with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and China Satellite.
Diversification Opportunities for Zhongshan Public and China Satellite
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongshan and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities 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 Zhongshan Public 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 Zhongshan Public Utilities 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 Zhongshan Public i.e., Zhongshan Public and China Satellite go up and down completely randomly.
Pair Corralation between Zhongshan Public and China Satellite
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.38 times more return on investment than China Satellite. However, Zhongshan Public Utilities is 2.65 times less risky than China Satellite. It trades about 0.26 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 866.00 in Zhongshan Public Utilities on September 26, 2024 and sell it today you would earn a total of 65.00 from holding Zhongshan Public Utilities or generate 7.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongshan Public Utilities vs. China Satellite Communications
Performance |
Timeline |
Zhongshan Public Uti |
China Satellite Comm |
Zhongshan Public and China Satellite Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongshan Public and China Satellite
The main advantage of trading using opposite Zhongshan Public and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public 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.Zhongshan Public vs. BeiGene | Zhongshan Public vs. Kweichow Moutai Co | Zhongshan Public vs. Beijing Roborock Technology | Zhongshan Public vs. G bits Network Technology |
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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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