Correlation Between ButOne Information and China Telecom
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and China Telecom Corp, you can compare the effects of market volatilities on ButOne Information 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 ButOne Information with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and China Telecom.
Diversification Opportunities for ButOne Information and China Telecom
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ButOne and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp 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 ButOne Information 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 ButOne Information Corp 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 ButOne Information i.e., ButOne Information and China Telecom go up and down completely randomly.
Pair Corralation between ButOne Information and China Telecom
Assuming the 90 days trading horizon ButOne Information Corp is expected to generate 1.94 times more return on investment than China Telecom. However, ButOne Information is 1.94 times more volatile than China Telecom Corp. It trades about 0.07 of its potential returns per unit of risk. China Telecom Corp is currently generating about 0.07 per unit of risk. If you would invest 1,805 in ButOne Information Corp on September 3, 2024 and sell it today you would earn a total of 543.00 from holding ButOne Information Corp or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. China Telecom Corp
Performance |
| Timeline |
| ButOne Information Corp |
| China Telecom Corp |
ButOne Information and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and China Telecom
The main advantage of trading using opposite ButOne Information and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information 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.| ButOne Information vs. Guangzhou KingTeller Technology | ButOne Information vs. Changchun UP Optotech | ButOne Information vs. Lander Sports Development | ButOne Information vs. Anhui Transport Consulting |
| China Telecom vs. Holitech Technology Co | China Telecom vs. Jiujiang Shanshui Technology | China Telecom vs. Ningbo MedicalSystem Biotechnology | China Telecom vs. Iat Automobile Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |