Correlation Between China Telecom and Suzhou SLAC
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By analyzing existing cross correlation between China Telecom Corp and Suzhou SLAC Precision, you can compare the effects of market volatilities on China Telecom and Suzhou SLAC 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 Suzhou SLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Suzhou SLAC.
Diversification Opportunities for China Telecom and Suzhou SLAC
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Suzhou is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Suzhou SLAC Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou SLAC Precision 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 Suzhou SLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou SLAC Precision has no effect on the direction of China Telecom i.e., China Telecom and Suzhou SLAC go up and down completely randomly.
Pair Corralation between China Telecom and Suzhou SLAC
Assuming the 90 days trading horizon China Telecom is expected to generate 2.35 times less return on investment than Suzhou SLAC. But when comparing it to its historical volatility, China Telecom Corp is 3.09 times less risky than Suzhou SLAC. It trades about 0.15 of its potential returns per unit of risk. Suzhou SLAC Precision is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,098 in Suzhou SLAC Precision on September 13, 2024 and sell it today you would earn a total of 130.00 from holding Suzhou SLAC Precision or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Telecom Corp vs. Suzhou SLAC Precision
Performance |
| Timeline |
| China Telecom Corp |
| Suzhou SLAC Precision |
China Telecom and Suzhou SLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Suzhou SLAC
The main advantage of trading using opposite China Telecom and Suzhou SLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Suzhou SLAC 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 Suzhou SLAC will offset losses from the drop in Suzhou SLAC's long position.| China Telecom vs. Changjiang Jinggong Steel | China Telecom vs. Hang Xiao Steel | China Telecom vs. JCHX Mining Management | China Telecom vs. Beijing SPC Environment |
| Suzhou SLAC vs. StarPower Semiconductor | Suzhou SLAC vs. Dongguan Aohai Technology | Suzhou SLAC vs. Olympic Circuit Technology | Suzhou SLAC vs. Ningbo Ligong Online |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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