Correlation Between Ebang International and SatixFy Communications
Can any of the company-specific risk be diversified away by investing in both Ebang International and SatixFy Communications 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 Ebang International and SatixFy Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebang International Holdings and SatixFy Communications, you can compare the effects of market volatilities on Ebang International and SatixFy Communications 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 Ebang International with a short position of SatixFy Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebang International and SatixFy Communications.
Diversification Opportunities for Ebang International and SatixFy Communications
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ebang and SatixFy is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ebang International Holdings and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications and Ebang International 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 Ebang International Holdings are associated (or correlated) with SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of Ebang International i.e., Ebang International and SatixFy Communications go up and down completely randomly.
Pair Corralation between Ebang International and SatixFy Communications
Given the investment horizon of 90 days Ebang International Holdings is expected to under-perform the SatixFy Communications. But the stock apears to be less risky and, when comparing its historical volatility, Ebang International Holdings is 2.24 times less risky than SatixFy Communications. The stock trades about -0.16 of its potential returns per unit of risk. The SatixFy Communications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 200.00 in SatixFy Communications on December 28, 2024 and sell it today you would lose (72.00) from holding SatixFy Communications or give up 36.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ebang International Holdings vs. SatixFy Communications
Performance |
Timeline |
Ebang International |
SatixFy Communications |
Ebang International and SatixFy Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ebang International and SatixFy Communications
The main advantage of trading using opposite Ebang International and SatixFy Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebang International position performs unexpectedly, SatixFy Communications 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 SatixFy Communications will offset losses from the drop in SatixFy Communications' long position.Ebang International vs. Kopin | Ebang International vs. Corning Incorporated | Ebang International vs. Ouster, Common Stock | Ebang International vs. LightPath Technologies |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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