Correlation Between FIRST SHIP and China Communications
Can any of the company-specific risk be diversified away by investing in both FIRST SHIP and China 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 FIRST SHIP and China Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SHIP LEASE and China Communications Services, you can compare the effects of market volatilities on FIRST SHIP and China 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 FIRST SHIP with a short position of China Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SHIP and China Communications.
Diversification Opportunities for FIRST SHIP and China Communications
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SHIP LEASE and China Communications Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Communications and FIRST SHIP 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 FIRST SHIP LEASE are associated (or correlated) with China Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Communications has no effect on the direction of FIRST SHIP i.e., FIRST SHIP and China Communications go up and down completely randomly.
Pair Corralation between FIRST SHIP and China Communications
Assuming the 90 days horizon FIRST SHIP is expected to generate 2.91 times less return on investment than China Communications. In addition to that, FIRST SHIP is 1.18 times more volatile than China Communications Services. It trades about 0.03 of its total potential returns per unit of risk. China Communications Services is currently generating about 0.12 per unit of volatility. If you would invest 43.00 in China Communications Services on April 23, 2025 and sell it today you would earn a total of 8.00 from holding China Communications Services or generate 18.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
FIRST SHIP LEASE vs. China Communications Services
Performance |
Timeline |
FIRST SHIP LEASE |
China Communications |
FIRST SHIP and China Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIRST SHIP and China Communications
The main advantage of trading using opposite FIRST SHIP and China Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SHIP position performs unexpectedly, China 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 China Communications will offset losses from the drop in China Communications' long position.FIRST SHIP vs. UNITED INTERNET N | FIRST SHIP vs. Transport International Holdings | FIRST SHIP vs. Ming Le Sports | FIRST SHIP vs. SPORT LISBOA E |
China Communications vs. GREENX METALS LTD | China Communications vs. SIMS METAL MGT | China Communications vs. Zoom Video Communications | China Communications vs. Lattice Semiconductor |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |