Correlation Between CHINA TELECOM and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both CHINA TELECOM and FPX Nickel 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 TELECOM and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TELECOM H and FPX Nickel Corp, you can compare the effects of market volatilities on CHINA TELECOM and FPX Nickel 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 TELECOM with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TELECOM and FPX Nickel.
Diversification Opportunities for CHINA TELECOM and FPX Nickel
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHINA and FPX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TELECOM H and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and CHINA TELECOM 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 TELECOM H are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of CHINA TELECOM i.e., CHINA TELECOM and FPX Nickel go up and down completely randomly.
Pair Corralation between CHINA TELECOM and FPX Nickel
If you would invest 16.00 in FPX Nickel Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding FPX Nickel Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TELECOM H vs. FPX Nickel Corp
Performance |
| Timeline |
| CHINA TELECOM H |
| FPX Nickel Corp |
CHINA TELECOM and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TELECOM and FPX Nickel
The main advantage of trading using opposite CHINA TELECOM and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TELECOM position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| CHINA TELECOM vs. UNITED RENTALS | CHINA TELECOM vs. CAL MAINE FOODS | CHINA TELECOM vs. Shenandoah Telecommunications | CHINA TELECOM vs. MAROC TELECOM |
| FPX Nickel vs. Iridium Communications | FPX Nickel vs. CHINA TELECOM H | FPX Nickel vs. CITIC Telecom International | FPX Nickel vs. FORWARD AIR P |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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