Correlation Between China Telecom and YLZ Information
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By analyzing existing cross correlation between China Telecom Corp and YLZ Information Tech, you can compare the effects of market volatilities on China Telecom and YLZ Information 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and YLZ Information.
Diversification Opportunities for China Telecom and YLZ Information
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and YLZ is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of China Telecom i.e., China Telecom and YLZ Information go up and down completely randomly.
Pair Corralation between China Telecom and YLZ Information
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.5 times more return on investment than YLZ Information. However, China Telecom Corp is 1.99 times less risky than YLZ Information. It trades about 0.03 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.02 per unit of risk. If you would invest 670.00 in China Telecom Corp on December 1, 2024 and sell it today you would earn a total of 105.00 from holding China Telecom Corp or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. YLZ Information Tech
Performance |
| Timeline |
| China Telecom Corp |
| YLZ Information Tech |
China Telecom and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and YLZ Information
The main advantage of trading using opposite China Telecom and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| China Telecom vs. Jason Furniture | China Telecom vs. Aurora Optoelectronics Co | China Telecom vs. Ziel Home Furnishing | China Telecom vs. Sunwoda Electronic |
| YLZ Information vs. TVZone Media Co | YLZ Information vs. Chengdu B ray Media | YLZ Information vs. Ningbo Ligong Online | YLZ Information vs. Shenzhen Centralcon Investment |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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