Correlation Between Guangdong Brandmax and China Telecom
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and China Telecom Corp, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and China Telecom.
Diversification Opportunities for Guangdong Brandmax and China Telecom
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and China Telecom go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and China Telecom
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 2.18 times more return on investment than China Telecom. However, Guangdong Brandmax is 2.18 times more volatile than China Telecom Corp. It trades about 0.12 of its potential returns per unit of risk. China Telecom Corp is currently generating about 0.08 per unit of risk. If you would invest 918.00 in Guangdong Brandmax Marketing on September 12, 2024 and sell it today you would earn a total of 93.00 from holding Guangdong Brandmax Marketing or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. China Telecom Corp
Performance |
| Timeline |
| Guangdong Brandmax |
| China Telecom Corp |
Guangdong Brandmax and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and China Telecom
The main advantage of trading using opposite Guangdong Brandmax and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Kweichow Moutai Co | Guangdong Brandmax vs. Shenzhen Mindray Bio Medical | Guangdong Brandmax vs. G bits Network Technology | Guangdong Brandmax vs. Beijing Roborock Technology |
| China Telecom vs. Guangdong Brandmax Marketing | China Telecom vs. Olympic Circuit Technology | China Telecom vs. Industrial Bank Co | China Telecom vs. China World Trade |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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