Correlation Between China Telecom and Beijing Shanghai
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Telecom Corp and Beijing Shanghai High Speed, you can compare the effects of market volatilities on China Telecom and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Beijing Shanghai.
Diversification Opportunities for China Telecom and Beijing Shanghai
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Beijing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of China Telecom i.e., China Telecom and Beijing Shanghai go up and down completely randomly.
Pair Corralation between China Telecom and Beijing Shanghai
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 1.31 times more return on investment than Beijing Shanghai. However, China Telecom is 1.31 times more volatile than Beijing Shanghai High Speed. It trades about -0.02 of its potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about -0.06 per unit of risk. If you would invest 650.00 in China Telecom Corp on August 25, 2024 and sell it today you would lose (8.00) from holding China Telecom Corp or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| China Telecom Corp |
| Beijing Shanghai High |
China Telecom and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Beijing Shanghai
The main advantage of trading using opposite China Telecom and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| China Telecom vs. Kunwu Jiuding Investment | China Telecom vs. Fiberhome Telecommunication Technologies | China Telecom vs. Jointo Energy Investment | China Telecom vs. Peoples Insurance of |
| Beijing Shanghai vs. CSSC Offshore Marine | Beijing Shanghai vs. Jonjee Hi tech Industrial | Beijing Shanghai vs. ChengDu Hi Tech Development | Beijing Shanghai vs. Suzhou Mingzhi Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |