Correlation Between Aluminum Corp and China Telecom
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aluminum Corp of and China Telecom Corp, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and China Telecom.
Diversification Opportunities for Aluminum Corp and China Telecom
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aluminum and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and China Telecom go up and down completely randomly.
Pair Corralation between Aluminum Corp and China Telecom
Assuming the 90 days trading horizon Aluminum Corp of is expected to under-perform the China Telecom. In addition to that, Aluminum Corp is 1.04 times more volatile than China Telecom Corp. It trades about -0.02 of its total potential returns per unit of risk. China Telecom Corp is currently generating about 0.05 per unit of volatility. If you would invest 636.00 in China Telecom Corp on September 1, 2024 and sell it today you would earn a total of 11.00 from holding China Telecom Corp or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. China Telecom Corp
Performance |
| Timeline |
| Aluminum Corp |
| China Telecom Corp |
Aluminum Corp and China Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and China Telecom
The main advantage of trading using opposite Aluminum Corp and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. AVIC Fund Management | Aluminum Corp vs. Lutian Machinery Co | Aluminum Corp vs. Allied Machinery Co | Aluminum Corp vs. Anhui Huilong Agricultural |
| China Telecom vs. Guangzhou Ruoyuchen Information | China Telecom vs. China Marine Information | China Telecom vs. Shanghai Rightongene Biotechnology | China Telecom vs. ButOne Information Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |