Correlation Between Telling Telecommunicatio and Shanghai Material
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By analyzing existing cross correlation between Telling Telecommunication Holding and Shanghai Material Trading, you can compare the effects of market volatilities on Telling Telecommunicatio and Shanghai Material 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 Telling Telecommunicatio with a short position of Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telling Telecommunicatio and Shanghai Material.
Diversification Opportunities for Telling Telecommunicatio and Shanghai Material
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Telling and Shanghai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Telling Telecommunication Hold and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading and Telling Telecommunicatio 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 Telling Telecommunication Holding are associated (or correlated) with Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Telling Telecommunicatio i.e., Telling Telecommunicatio and Shanghai Material go up and down completely randomly.
Pair Corralation between Telling Telecommunicatio and Shanghai Material
Assuming the 90 days trading horizon Telling Telecommunication Holding is expected to under-perform the Shanghai Material. In addition to that, Telling Telecommunicatio is 1.19 times more volatile than Shanghai Material Trading. It trades about -0.39 of its total potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.41 per unit of volatility. If you would invest 1,225 in Shanghai Material Trading on October 14, 2024 and sell it today you would lose (300.00) from holding Shanghai Material Trading or give up 24.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telling Telecommunication Hold vs. Shanghai Material Trading
Performance |
| Timeline |
| Telling Telecommunicatio |
| Shanghai Material Trading |
Telling Telecommunicatio and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telling Telecommunicatio and Shanghai Material
The main advantage of trading using opposite Telling Telecommunicatio and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telling Telecommunicatio position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Telling Telecommunicatio vs. Sichuan Teway Food | Telling Telecommunicatio vs. Shantui Construction Machinery | Telling Telecommunicatio vs. Guilin Seamild Foods | Telling Telecommunicatio vs. HaiXin Foods Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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