Correlation Between China Satellite and Xiangyang Automobile
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By analyzing existing cross correlation between China Satellite Communications and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on China Satellite and Xiangyang Automobile 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 China Satellite with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and Xiangyang Automobile.
Diversification Opportunities for China Satellite and Xiangyang Automobile
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xiangyang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and China Satellite 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 China Satellite Communications are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of China Satellite i.e., China Satellite and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between China Satellite and Xiangyang Automobile
Assuming the 90 days trading horizon China Satellite Communications is expected to generate 1.14 times more return on investment than Xiangyang Automobile. However, China Satellite is 1.14 times more volatile than Xiangyang Automobile Bearing. It trades about 0.21 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.21 per unit of risk. If you would invest 1,414 in China Satellite Communications on September 15, 2024 and sell it today you would earn a total of 941.00 from holding China Satellite Communications or generate 66.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
China Satellite Communications vs. Xiangyang Automobile Bearing
Performance |
Timeline |
China Satellite Comm |
Xiangyang Automobile |
China Satellite and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Satellite and Xiangyang Automobile
The main advantage of trading using opposite China Satellite and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.China Satellite vs. Xiangyang Automobile Bearing | China Satellite vs. Changjiang Jinggong Steel | China Satellite vs. Elite Color Environmental | China Satellite vs. Haima Automobile Group |
Xiangyang Automobile vs. BeiGene | Xiangyang Automobile vs. Kweichow Moutai Co | Xiangyang Automobile vs. Beijing Roborock Technology | Xiangyang Automobile vs. G bits Network 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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