Correlation Between China Telecom and Suzhou Maxwell
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By analyzing existing cross correlation between China Telecom Corp and Suzhou Maxwell Technologies, you can compare the effects of market volatilities on China Telecom and Suzhou Maxwell 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 Maxwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Suzhou Maxwell.
Diversification Opportunities for China Telecom and Suzhou Maxwell
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Suzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Suzhou Maxwell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Maxwell Techn 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 Maxwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Maxwell Techn has no effect on the direction of China Telecom i.e., China Telecom and Suzhou Maxwell go up and down completely randomly.
Pair Corralation between China Telecom and Suzhou Maxwell
Assuming the 90 days trading horizon China Telecom is expected to generate 3.8 times less return on investment than Suzhou Maxwell. But when comparing it to its historical volatility, China Telecom Corp is 2.24 times less risky than Suzhou Maxwell. It trades about 0.05 of its potential returns per unit of risk. Suzhou Maxwell Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,580 in Suzhou Maxwell Technologies on September 1, 2024 and sell it today you would earn a total of 760.00 from holding Suzhou Maxwell Technologies or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Telecom Corp vs. Suzhou Maxwell Technologies
Performance |
| Timeline |
| China Telecom Corp |
| Suzhou Maxwell Techn |
China Telecom and Suzhou Maxwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Suzhou Maxwell
The main advantage of trading using opposite China Telecom and Suzhou Maxwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Suzhou Maxwell 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 Maxwell will offset losses from the drop in Suzhou Maxwell'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 |
| Suzhou Maxwell vs. Jilin Jlu Communication | Suzhou Maxwell vs. Guangdong Brandmax Marketing | Suzhou Maxwell vs. Heilongjiang Transport Development | Suzhou Maxwell vs. China Satellite Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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