Correlation Between China Telecom and Yunnan Jianzhijia
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By analyzing existing cross correlation between China Telecom Corp and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on China Telecom and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Yunnan Jianzhijia.
Diversification Opportunities for China Telecom and Yunnan Jianzhijia
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Yunnan is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of China Telecom i.e., China Telecom and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between China Telecom and Yunnan Jianzhijia
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 1.47 times more return on investment than Yunnan Jianzhijia. However, China Telecom is 1.47 times more volatile than Yunnan Jianzhijia Health Chain. It trades about 0.35 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.12 per unit of risk. If you would invest 706.00 in China Telecom Corp on November 27, 2024 and sell it today you would earn a total of 130.00 from holding China Telecom Corp or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Telecom Corp vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| China Telecom Corp |
| Yunnan Jianzhijia |
China Telecom and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and Yunnan Jianzhijia
The main advantage of trading using opposite China Telecom and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia'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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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