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

-0.49

Correlation Coefficient

Ebang International  SatixFy Communications

Very good diversification

The 3 months correlation between Ebang and SatixFy is -0.49. 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 2.46 times less risky than SatixFy Communications. The stock trades about -0.18 of its potential returns per unit of risk. The SatixFy Communications is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  88.00  in SatixFy Communications on December 1, 2024 and sell it today you would earn a total of  23.00  from holding SatixFy Communications or generate 26.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ebang International Holdings  vs.  SatixFy Communications

Ebang International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ebang International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SatixFy Communications

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SatixFy Communications are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, SatixFy Communications showed solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind Ebang International Holdings and SatixFy Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.