Correlation Between Vastned Retail and CHINA TELECOM
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and CHINA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and CHINA TELECOM H , you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and CHINA TELECOM.
Diversification Opportunities for Vastned Retail and CHINA TELECOM
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vastned and CHINA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV 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 Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and CHINA TELECOM go up and down completely randomly.
Pair Corralation between Vastned Retail and CHINA TELECOM
If you would invest 52.00 in CHINA TELECOM H on September 13, 2024 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. CHINA TELECOM H
Performance |
| Timeline |
| Vastned Retail NV |
| CHINA TELECOM H |
Vastned Retail and CHINA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and CHINA TELECOM
The main advantage of trading using opposite Vastned Retail and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. Guidewire Software | Vastned Retail vs. Evolution Mining Limited | Vastned Retail vs. TAL Education Group | Vastned Retail vs. MAGIC SOFTWARE ENTR |
| CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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