Correlation Between Impulse Qingdao and China Telecom
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By analyzing existing cross correlation between Impulse Qingdao Health and China Telecom Corp, you can compare the effects of market volatilities on Impulse Qingdao and China Telecom 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 Impulse Qingdao with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Qingdao and China Telecom.
Diversification Opportunities for Impulse Qingdao and China Telecom
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Impulse and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Qingdao Health and China Telecom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Telecom Corp and Impulse Qingdao 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 Impulse Qingdao Health are associated (or correlated) with China Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Telecom Corp has no effect on the direction of Impulse Qingdao i.e., Impulse Qingdao and China Telecom go up and down completely randomly.
Pair Corralation between Impulse Qingdao and China Telecom
Assuming the 90 days trading horizon Impulse Qingdao is expected to generate 2.11 times less return on investment than China Telecom. In addition to that, Impulse Qingdao is 2.05 times more volatile than China Telecom Corp. It trades about 0.14 of its total potential returns per unit of risk. China Telecom Corp is currently generating about 0.61 per unit of volatility. If you would invest 669.00 in China Telecom Corp on November 22, 2024 and sell it today you would earn a total of 137.00 from holding China Telecom Corp or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Qingdao Health vs. China Telecom Corp
Performance |
| Timeline |
| Impulse Qingdao Health |
| China Telecom Corp |
Impulse Qingdao and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Qingdao and China Telecom
The main advantage of trading using opposite Impulse Qingdao and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Qingdao position performs unexpectedly, China Telecom 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 Telecom will offset losses from the drop in China Telecom's long position.| Impulse Qingdao vs. Western Metal Materials | Impulse Qingdao vs. Nanning Chemical Industry | Impulse Qingdao vs. North Copper Shanxi | Impulse Qingdao vs. Guangzhou Dongfang Hotel |
| China Telecom vs. Rongcheer Industrial Technology | China Telecom vs. Shandong Hongchuang Aluminum | China Telecom vs. Jiangsu Phoenix Publishing | China Telecom vs. China Publishing Media |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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