Correlation Between China Telecom and Sanan Optoelectronics
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By analyzing existing cross correlation between China Telecom Corp and Sanan Optoelectronics Co, you can compare the effects of market volatilities on China Telecom and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Sanan Optoelectronics.
Diversification Opportunities for China Telecom and Sanan Optoelectronics
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Sanan is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of China Telecom i.e., China Telecom and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between China Telecom and Sanan Optoelectronics
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.69 times more return on investment than Sanan Optoelectronics. However, China Telecom Corp is 1.46 times less risky than Sanan Optoelectronics. It trades about 0.1 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.06 per unit of risk. If you would invest 606.00 in China Telecom Corp on November 2, 2024 and sell it today you would earn a total of 100.00 from holding China Telecom Corp or generate 16.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| China Telecom Corp |
| Sanan Optoelectronics |
China Telecom and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Sanan Optoelectronics
The main advantage of trading using opposite China Telecom and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| China Telecom vs. Guangdong Silvere Sci | China Telecom vs. Jiangyin Jianghua Microelectronics | China Telecom vs. Uroica Mining Safety | China Telecom vs. Weihai Honglin Electronic |
| Sanan Optoelectronics vs. SSAW Hotels Resorts | Sanan Optoelectronics vs. Sichuan Fulin Transportation | Sanan Optoelectronics vs. Qijing Machinery | Sanan Optoelectronics vs. Guangzhou Dongfang Hotel |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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