Correlation Between Performance Food and CHINA TELECOM
Can any of the company-specific risk be diversified away by investing in both Performance Food 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 Performance Food and CHINA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Food Group and CHINA TELECOM H , you can compare the effects of market volatilities on Performance Food 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 Performance Food with a short position of CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and CHINA TELECOM.
Diversification Opportunities for Performance Food and CHINA TELECOM
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Performance and CHINA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group 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 Performance Food 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 Performance Food Group 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 Performance Food i.e., Performance Food and CHINA TELECOM go up and down completely randomly.
Pair Corralation between Performance Food and CHINA TELECOM
If you would invest 7,800 in Performance Food Group on September 20, 2024 and sell it today you would earn a total of 400.00 from holding Performance Food Group or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Food Group vs. CHINA TELECOM H
Performance |
| Timeline |
| Performance Food |
| CHINA TELECOM H |
Performance Food and CHINA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and CHINA TELECOM
The main advantage of trading using opposite Performance Food and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food 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.| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
| CHINA TELECOM vs. Choice Hotels International | CHINA TELECOM vs. MELIA HOTELS | CHINA TELECOM vs. InterContinental Hotels Group | CHINA TELECOM vs. INTERCONT HOTELS |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets |