Correlation Between China BlueChemical and Telecom Argentina
Can any of the company-specific risk be diversified away by investing in both China BlueChemical and Telecom Argentina 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 BlueChemical and Telecom Argentina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China BlueChemical and Telecom Argentina SA, you can compare the effects of market volatilities on China BlueChemical and Telecom Argentina 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 BlueChemical with a short position of Telecom Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China BlueChemical and Telecom Argentina.
Diversification Opportunities for China BlueChemical and Telecom Argentina
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Telecom is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding China BlueChemical and Telecom Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Argentina and China BlueChemical 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 BlueChemical are associated (or correlated) with Telecom Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Argentina has no effect on the direction of China BlueChemical i.e., China BlueChemical and Telecom Argentina go up and down completely randomly.
Pair Corralation between China BlueChemical and Telecom Argentina
Assuming the 90 days horizon China BlueChemical is expected to generate 1.46 times less return on investment than Telecom Argentina. But when comparing it to its historical volatility, China BlueChemical is 1.15 times less risky than Telecom Argentina. It trades about 0.14 of its potential returns per unit of risk. Telecom Argentina SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Telecom Argentina SA on October 12, 2024 and sell it today you would earn a total of 150.00 from holding Telecom Argentina SA or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China BlueChemical vs. Telecom Argentina SA
Performance |
| Timeline |
| China BlueChemical |
| Telecom Argentina |
China BlueChemical and Telecom Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China BlueChemical and Telecom Argentina
The main advantage of trading using opposite China BlueChemical and Telecom Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China BlueChemical position performs unexpectedly, Telecom Argentina 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 Telecom Argentina will offset losses from the drop in Telecom Argentina's long position.| China BlueChemical vs. Molina Healthcare | China BlueChemical vs. Sixt Leasing SE | China BlueChemical vs. SK TELECOM TDADR | China BlueChemical vs. Chunghwa Telecom Co |
| Telecom Argentina vs. Apollo Investment Corp | Telecom Argentina vs. Gladstone Investment | Telecom Argentina vs. SINGAPORE AIRLINES | Telecom Argentina vs. Nok Airlines PCL |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |