Correlation Between China Telecom and Duzhe Publishing
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By analyzing existing cross correlation between China Telecom Corp and Duzhe Publishing Media, you can compare the effects of market volatilities on China Telecom and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Duzhe Publishing.
Diversification Opportunities for China Telecom and Duzhe Publishing
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Duzhe is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of China Telecom i.e., China Telecom and Duzhe Publishing go up and down completely randomly.
Pair Corralation between China Telecom and Duzhe Publishing
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.63 times more return on investment than Duzhe Publishing. However, China Telecom Corp is 1.58 times less risky than Duzhe Publishing. It trades about 0.05 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.02 per unit of risk. If you would invest 596.00 in China Telecom Corp on November 27, 2024 and sell it today you would earn a total of 240.00 from holding China Telecom Corp or generate 40.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Duzhe Publishing Media
Performance |
| Timeline |
| China Telecom Corp |
| Duzhe Publishing Media |
China Telecom and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Duzhe Publishing
The main advantage of trading using opposite China Telecom and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| China Telecom vs. Eyebright Medical Technology | China Telecom vs. Runjian Communication Co | China Telecom vs. Kuang Chi Technologies | China Telecom vs. Fiberhome Telecommunication Technologies |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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