Correlation Between China Telecom and ACM Research
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By analyzing existing cross correlation between China Telecom Corp and ACM Research Shanghai, you can compare the effects of market volatilities on China Telecom and ACM Research 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 ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and ACM Research.
Diversification Opportunities for China Telecom and ACM Research
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and ACM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom Corp and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai 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 ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of China Telecom i.e., China Telecom and ACM Research go up and down completely randomly.
Pair Corralation between China Telecom and ACM Research
Assuming the 90 days trading horizon China Telecom Corp is expected to generate 0.84 times more return on investment than ACM Research. However, China Telecom Corp is 1.19 times less risky than ACM Research. It trades about 0.12 of its potential returns per unit of risk. ACM Research Shanghai is currently generating about -0.41 per unit of risk. If you would invest 679.00 in China Telecom Corp on October 14, 2024 and sell it today you would earn a total of 19.00 from holding China Telecom Corp or generate 2.8% 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. ACM Research Shanghai
Performance |
| Timeline |
| China Telecom Corp |
| ACM Research Shanghai |
China Telecom and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Telecom and ACM Research
The main advantage of trading using opposite China Telecom and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research's long position.| China Telecom vs. Zoje Resources Investment | China Telecom vs. Jiangsu Yanghe Brewery | China Telecom vs. Shandong Polymer Biochemicals | China Telecom vs. Kunwu Jiuding Investment |
| ACM Research vs. Shuhua Sports Co | ACM Research vs. Guosheng Financial Holding | ACM Research vs. Shanghai Yaoji Playing | ACM Research vs. Postal Savings Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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