Correlation Between China Telecom and Kunwu Jiuding
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By analyzing existing cross correlation between China Telecom Corp and Kunwu Jiuding Investment, you can compare the effects of market volatilities on China Telecom and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Kunwu Jiuding.
Diversification Opportunities for China Telecom and Kunwu Jiuding
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Kunwu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of China Telecom i.e., China Telecom and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between China Telecom and Kunwu Jiuding
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.65 times more return on investment than Kunwu Jiuding. However, China Telecom Corp is 1.55 times less risky than Kunwu Jiuding. It trades about 0.06 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.02 per unit of risk. If you would invest 403.00 in China Telecom Corp on August 29, 2024 and sell it today you would earn a total of 240.00 from holding China Telecom Corp or generate 59.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| China Telecom Corp |
| Kunwu Jiuding Investment |
China Telecom and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Kunwu Jiuding
The main advantage of trading using opposite China Telecom and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| China Telecom vs. Yunnan Jianzhijia Health Chain | China Telecom vs. CIMC Vehicles Co | China Telecom vs. Offshore Oil Engineering | China Telecom vs. Impulse Qingdao Health |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Anhui Gujing Distillery | Kunwu Jiuding vs. Anhui Transport Consulting |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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