Correlation Between Natural Health and CHINA TELECOM
Can any of the company-specific risk be diversified away by investing in both Natural Health 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 Natural Health and CHINA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Health Trends and CHINA TELECOM H , you can compare the effects of market volatilities on Natural Health 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 Natural Health with a short position of CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Health and CHINA TELECOM.
Diversification Opportunities for Natural Health and CHINA TELECOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Natural and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Natural Health Trends 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 Natural Health 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 Natural Health Trends 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 Natural Health i.e., Natural Health and CHINA TELECOM go up and down completely randomly.
Pair Corralation between Natural Health and CHINA TELECOM
If you would invest 52.00 in CHINA TELECOM H on January 9, 2025 and sell it today you would earn a total of 0.00 from holding CHINA TELECOM H or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Natural Health Trends vs. CHINA TELECOM H
Performance |
| Timeline |
| Natural Health Trends |
| CHINA TELECOM H |
Natural Health and CHINA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Health and CHINA TELECOM
The main advantage of trading using opposite Natural Health and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Health 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.| Natural Health vs. Vienna Insurance Group | Natural Health vs. URBAN OUTFITTERS | Natural Health vs. ULTRA CLEAN HLDGS | Natural Health vs. CLEAN ENERGY FUELS |
| CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Microsoft |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance |