Correlation Between China Telecom and Zhejiang Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Telecom Corp and Zhejiang Construction Investment, you can compare the effects of market volatilities on China Telecom and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Zhejiang Construction.
Diversification Opportunities for China Telecom and Zhejiang Construction
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhejiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of China Telecom i.e., China Telecom and Zhejiang Construction go up and down completely randomly.
Pair Corralation between China Telecom and Zhejiang Construction
Assuming the 90 days trading horizon China Telecom is expected to generate 4.49 times less return on investment than Zhejiang Construction. But when comparing it to its historical volatility, China Telecom Corp is 2.69 times less risky than Zhejiang Construction. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 948.00 in Zhejiang Construction Investment on September 12, 2024 and sell it today you would earn a total of 121.00 from holding Zhejiang Construction Investment or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Telecom Corp vs. Zhejiang Construction Investme
Performance |
| Timeline |
| China Telecom Corp |
| Zhejiang Construction |
China Telecom and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Zhejiang Construction
The main advantage of trading using opposite China Telecom and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| China Telecom vs. Guangdong Brandmax Marketing | China Telecom vs. Olympic Circuit Technology | China Telecom vs. Industrial Bank Co | China Telecom vs. China World Trade |
| Zhejiang Construction vs. Lutian Machinery Co | Zhejiang Construction vs. PetroChina Co Ltd | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. Gansu Jiu Steel |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |