Correlation Between Comba Telecom and CHINA TELECOM
Can any of the company-specific risk be diversified away by investing in both Comba Telecom and CHINA TELECOM 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 Comba Telecom and CHINA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and CHINA TELECOM H , you can compare the effects of market volatilities on Comba Telecom and CHINA TELECOM 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 Comba Telecom with a short position of CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and CHINA TELECOM.
Diversification Opportunities for Comba Telecom and CHINA TELECOM
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comba and CHINA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems and CHINA TELECOM H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TELECOM H and Comba 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 Comba Telecom Systems are associated (or correlated) with CHINA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TELECOM H has no effect on the direction of Comba Telecom i.e., Comba Telecom and CHINA TELECOM go up and down completely randomly.
Pair Corralation between Comba Telecom and CHINA TELECOM
If you would invest 12.00 in Comba Telecom Systems on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Comba Telecom Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Comba Telecom Systems vs. CHINA TELECOM H
Performance |
| Timeline |
| Comba Telecom Systems |
| CHINA TELECOM H |
Comba Telecom and CHINA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and CHINA TELECOM
The main advantage of trading using opposite Comba Telecom and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom position performs unexpectedly, CHINA TELECOM 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 CHINA TELECOM will offset losses from the drop in CHINA TELECOM's long position.| Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc | Comba Telecom vs. Apple Inc |
| CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |