Correlation Between Suzhou Industrial and China Telecom
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By analyzing existing cross correlation between Suzhou Industrial Park and China Telecom Corp, you can compare the effects of market volatilities on Suzhou Industrial 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 Suzhou Industrial with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and China Telecom.
Diversification Opportunities for Suzhou Industrial and China Telecom
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park 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 Suzhou Industrial 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 Suzhou Industrial Park 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 Suzhou Industrial i.e., Suzhou Industrial and China Telecom go up and down completely randomly.
Pair Corralation between Suzhou Industrial and China Telecom
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to under-perform the China Telecom. In addition to that, Suzhou Industrial is 6.46 times more volatile than China Telecom Corp. It trades about -0.03 of its total potential returns per unit of risk. China Telecom Corp is currently generating about -0.06 per unit of volatility. If you would invest 698.00 in China Telecom Corp on October 18, 2024 and sell it today you would lose (10.00) from holding China Telecom Corp or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. China Telecom Corp
Performance |
| Timeline |
| Suzhou Industrial Park |
| China Telecom Corp |
Suzhou Industrial and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and China Telecom
The main advantage of trading using opposite Suzhou Industrial and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial 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.| Suzhou Industrial vs. Union Semiconductor Co | Suzhou Industrial vs. Northern United Publishing | Suzhou Industrial vs. Changjiang Publishing Media | Suzhou Industrial vs. Shanghai V Test Semiconductor |
| China Telecom vs. Anhui Huaren Health | China Telecom vs. Everjoy Health Group | China Telecom vs. Suzhou Industrial Park | China Telecom vs. Guangzhou Haozhi Industrial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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