Correlation Between China Resources and TELUS
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By analyzing existing cross correlation between China Resources Beer and TELUS P 37, you can compare the effects of market volatilities on China Resources and TELUS 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 Resources with a short position of TELUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and TELUS.
Diversification Opportunities for China Resources and TELUS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and TELUS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and TELUS P 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS P 37 and China Resources 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 Resources Beer are associated (or correlated) with TELUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELUS P 37 has no effect on the direction of China Resources i.e., China Resources and TELUS go up and down completely randomly.
Pair Corralation between China Resources and TELUS
Assuming the 90 days horizon China Resources Beer is expected to generate 36.16 times more return on investment than TELUS. However, China Resources is 36.16 times more volatile than TELUS P 37. It trades about 0.22 of its potential returns per unit of risk. TELUS P 37 is currently generating about -0.18 per unit of risk. If you would invest 261.00 in China Resources Beer on October 9, 2024 and sell it today you would earn a total of 49.00 from holding China Resources Beer or generate 18.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
China Resources Beer vs. TELUS P 37
Performance |
| Timeline |
| China Resources Beer |
| TELUS P 37 |
China Resources and TELUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and TELUS
The main advantage of trading using opposite China Resources and TELUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, TELUS 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 TELUS will offset losses from the drop in TELUS's long position.| China Resources vs. Tsingtao Brewery Co | China Resources vs. Budweiser Brewing | China Resources vs. Boston Beer | China Resources vs. Anheuser Busch Inbev |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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