Correlation Between China Telecom and Yuan Longping
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By analyzing existing cross correlation between China Telecom Corp and Yuan Longping High tech, you can compare the effects of market volatilities on China Telecom and Yuan Longping 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 China Telecom with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Yuan Longping.
Diversification Opportunities for China Telecom and Yuan Longping
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Yuan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and China Telecom 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 China Telecom Corp are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of China Telecom i.e., China Telecom and Yuan Longping go up and down completely randomly.
Pair Corralation between China Telecom and Yuan Longping
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 1.16 times more return on investment than Yuan Longping. However, China Telecom is 1.16 times more volatile than Yuan Longping High tech. It trades about 0.05 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.04 per unit of risk. If you would invest 424.00 in China Telecom Corp on August 26, 2024 and sell it today you would earn a total of 218.00 from holding China Telecom Corp or generate 51.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Yuan Longping High tech
Performance |
| Timeline |
| China Telecom Corp |
| Yuan Longping High |
China Telecom and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Yuan Longping
The main advantage of trading using opposite China Telecom and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| China Telecom vs. Kunwu Jiuding Investment | China Telecom vs. Fiberhome Telecommunication Technologies | China Telecom vs. Jointo Energy Investment | China Telecom vs. Peoples Insurance of |
| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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.
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