Correlation Between China Teletech and HG Holdings
Can any of the company-specific risk be diversified away by investing in both China Teletech and HG Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Teletech and HG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Teletech Holding and HG Holdings, you can compare the effects of market volatilities on China Teletech and HG Holdings 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 Teletech with a short position of HG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Teletech and HG Holdings.
Diversification Opportunities for China Teletech and HG Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and STLY is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding China Teletech Holding and HG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HG Holdings and China Teletech 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 Teletech Holding are associated (or correlated) with HG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HG Holdings has no effect on the direction of China Teletech i.e., China Teletech and HG Holdings go up and down completely randomly.
Pair Corralation between China Teletech and HG Holdings
If you would invest 0.22 in China Teletech Holding on September 3, 2024 and sell it today you would lose (0.13) from holding China Teletech Holding or give up 59.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
China Teletech Holding vs. HG Holdings
Performance |
| Timeline |
| China Teletech Holding |
| HG Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Teletech and HG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Teletech and HG Holdings
The main advantage of trading using opposite China Teletech and HG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Teletech position performs unexpectedly, HG Holdings 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 HG Holdings will offset losses from the drop in HG Holdings' long position.| China Teletech vs. Oncologix Tech | China Teletech vs. Aqua Power Systems | China Teletech vs. TransAKT | China Teletech vs. China Health Management |
| HG Holdings vs. Hooker Furniture | HG Holdings vs. Marine Products | HG Holdings vs. United Fire Group | HG Holdings vs. Bassett Furniture Industries |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |