Correlation Between China Telecom and Runjian Communication
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By analyzing existing cross correlation between China Telecom Corp and Runjian Communication Co, you can compare the effects of market volatilities on China Telecom and Runjian Communication 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 Runjian Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Runjian Communication.
Diversification Opportunities for China Telecom and Runjian Communication
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Runjian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Runjian Communication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Runjian Communication 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 Runjian Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Runjian Communication has no effect on the direction of China Telecom i.e., China Telecom and Runjian Communication go up and down completely randomly.
Pair Corralation between China Telecom and Runjian Communication
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.52 times more return on investment than Runjian Communication. However, China Telecom Corp is 1.93 times less risky than Runjian Communication. It trades about 0.02 of its potential returns per unit of risk. Runjian Communication Co is currently generating about -0.01 per unit of risk. If you would invest 607.00 in China Telecom Corp on September 1, 2024 and sell it today you would earn a total of 40.00 from holding China Telecom Corp or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Runjian Communication Co
Performance |
| Timeline |
| China Telecom Corp |
| Runjian Communication |
China Telecom and Runjian Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Runjian Communication
The main advantage of trading using opposite China Telecom and Runjian Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Runjian Communication 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 Runjian Communication will offset losses from the drop in Runjian Communication's long position.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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