Correlation Between Deutsche Telekom and China Taiping
Can any of the company-specific risk be diversified away by investing in both Deutsche Telekom and China Taiping 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 Deutsche Telekom and China Taiping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Telekom AG and China Taiping Insurance, you can compare the effects of market volatilities on Deutsche Telekom and China Taiping 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 Deutsche Telekom with a short position of China Taiping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Telekom and China Taiping.
Diversification Opportunities for Deutsche Telekom and China Taiping
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Deutsche and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Telekom AG and China Taiping Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Taiping Insurance and Deutsche Telekom 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 Deutsche Telekom AG are associated (or correlated) with China Taiping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Taiping Insurance has no effect on the direction of Deutsche Telekom i.e., Deutsche Telekom and China Taiping go up and down completely randomly.
Pair Corralation between Deutsche Telekom and China Taiping
If you would invest 2,899 in Deutsche Telekom AG on October 25, 2024 and sell it today you would earn a total of 96.00 from holding Deutsche Telekom AG or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Deutsche Telekom AG vs. China Taiping Insurance
Performance |
| Timeline |
| Deutsche Telekom |
| China Taiping Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Telekom and China Taiping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Telekom and China Taiping
The main advantage of trading using opposite Deutsche Telekom and China Taiping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Telekom position performs unexpectedly, China Taiping 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 Taiping will offset losses from the drop in China Taiping's long position.| Deutsche Telekom vs. CENTURIA OFFICE REIT | Deutsche Telekom vs. OFFICE DEPOT | Deutsche Telekom vs. KENEDIX OFFICE INV | Deutsche Telekom vs. CVR Medical Corp |
| China Taiping vs. TEXAS ROADHOUSE | China Taiping vs. Goosehead Insurance | China Taiping vs. G III Apparel Group | China Taiping vs. Transport International Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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