Correlation Between Shanghai Jinfeng and China Satellite
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and China Satellite Communications, you can compare the effects of market volatilities on Shanghai Jinfeng 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 Jinfeng with a short position of China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and China Satellite.
Diversification Opportunities for Shanghai Jinfeng and China Satellite
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine 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 Jinfeng 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 Jinfeng Wine 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 Jinfeng i.e., Shanghai Jinfeng and China Satellite go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and China Satellite
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 2.59 times less return on investment than China Satellite. In addition to that, Shanghai Jinfeng is 1.23 times more volatile than China Satellite Communications. It trades about 0.02 of its total potential returns per unit of risk. China Satellite Communications is currently generating about 0.07 per unit of volatility. If you would invest 2,059 in China Satellite Communications on September 26, 2024 and sell it today you would earn a total of 87.00 from holding China Satellite Communications or generate 4.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Jinfeng Wine vs. China Satellite Communications
Performance |
Timeline |
Shanghai Jinfeng Wine |
China Satellite Comm |
Shanghai Jinfeng and China Satellite Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Jinfeng and China Satellite
The main advantage of trading using opposite Shanghai Jinfeng and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng 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 Jinfeng vs. ZJBC Information Technology | Shanghai Jinfeng vs. Harbin Air Conditioning | Shanghai Jinfeng vs. Longmaster Information Tech | Shanghai Jinfeng vs. Guangzhou Ruoyuchen Information |
China Satellite vs. Jiangsu GDK Biotechnology | China Satellite vs. Guangdong Shenglu Telecommunication | China Satellite vs. Guangxi Wuzhou Communications | China Satellite vs. Changchun BCHT Biotechnology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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