Correlation Between CHINA TELECOM and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both CHINA TELECOM and TRADEDOUBLER 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 TRADEDOUBLER 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 TRADEDOUBLER AB SK, you can compare the effects of market volatilities on CHINA TELECOM and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TELECOM and TRADEDOUBLER.
Diversification Opportunities for CHINA TELECOM and TRADEDOUBLER
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHINA and TRADEDOUBLER is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TELECOM H and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of CHINA TELECOM i.e., CHINA TELECOM and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between CHINA TELECOM and TRADEDOUBLER
If you would invest 26.00 in TRADEDOUBLER AB SK on September 13, 2024 and sell it today you would earn a total of 0.00 from holding TRADEDOUBLER AB SK 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. TRADEDOUBLER AB SK
Performance |
| Timeline |
| CHINA TELECOM H |
| TRADEDOUBLER AB SK |
CHINA TELECOM and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TELECOM and TRADEDOUBLER
The main advantage of trading using opposite CHINA TELECOM and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TELECOM position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.| CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc | CHINA TELECOM vs. Apple Inc |
| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB | TRADEDOUBLER vs. NorAm Drilling AS | TRADEDOUBLER vs. Norsk Hydro ASA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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