Correlation Between China Telecom and Grinm Advanced
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By analyzing existing cross correlation between China Telecom Corp and Grinm Advanced Materials, you can compare the effects of market volatilities on China Telecom and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Grinm Advanced.
Diversification Opportunities for China Telecom and Grinm Advanced
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Grinm is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced Materials 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of China Telecom i.e., China Telecom and Grinm Advanced go up and down completely randomly.
Pair Corralation between China Telecom and Grinm Advanced
Assuming the 90 days trading horizon China Telecom Corp is expected to under-perform the Grinm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, China Telecom Corp is 3.04 times less risky than Grinm Advanced. The stock trades about -0.05 of its potential returns per unit of risk. The Grinm Advanced Materials is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 1,145 in Grinm Advanced Materials on August 27, 2024 and sell it today you would earn a total of 1,427 from holding Grinm Advanced Materials or generate 124.63% 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. Grinm Advanced Materials
Performance |
| Timeline |
| China Telecom Corp |
| Grinm Advanced Materials |
China Telecom and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Grinm Advanced
The main advantage of trading using opposite China Telecom and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced's long position.| China Telecom vs. Anji Foodstuff Co | China Telecom vs. Peoples Insurance of | China Telecom vs. New Hope Dairy | China Telecom vs. Ligao Foods CoLtd |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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