Correlation Between China Telecom and Beijing Venustech
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Telecom Corp and Beijing Venustech, you can compare the effects of market volatilities on China Telecom and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Beijing Venustech.
Diversification Opportunities for China Telecom and Beijing Venustech
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of China Telecom i.e., China Telecom and Beijing Venustech go up and down completely randomly.
Pair Corralation between China Telecom and Beijing Venustech
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.7 times more return on investment than Beijing Venustech. However, China Telecom Corp is 1.42 times less risky than Beijing Venustech. It trades about 0.04 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.03 per unit of risk. If you would invest 628.00 in China Telecom Corp on November 28, 2024 and sell it today you would earn a total of 184.00 from holding China Telecom Corp or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Beijing Venustech
Performance |
| Timeline |
| China Telecom Corp |
| Beijing Venustech |
China Telecom and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Beijing Venustech
The main advantage of trading using opposite China Telecom and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| China Telecom vs. Songz Automobile Air | China Telecom vs. Ningbo Fangzheng Automobile | China Telecom vs. Dongfeng Automobile Co | China Telecom vs. Air China Ltd |
| Beijing Venustech vs. Ningbo Ligong Online | Beijing Venustech vs. Chengdu B ray Media | Beijing Venustech vs. Sichuan Newsnet Media | Beijing Venustech vs. Beijing Kingsoft Office |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |