Correlation Between Cultural Investment and China Telecom
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By analyzing existing cross correlation between Cultural Investment Holdings and China Telecom Corp, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of China Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and China Telecom.
Diversification Opportunities for Cultural Investment and China Telecom
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cultural and China is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and China Telecom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Telecom Corp and Cultural Investment 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 Cultural Investment Holdings 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 Corp has no effect on the direction of Cultural Investment i.e., Cultural Investment and China Telecom go up and down completely randomly.
Pair Corralation between Cultural Investment and China Telecom
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.49 times more return on investment than China Telecom. However, Cultural Investment is 1.49 times more volatile than China Telecom Corp. It trades about 0.16 of its potential returns per unit of risk. China Telecom Corp is currently generating about 0.11 per unit of risk. If you would invest 188.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 56.00 from holding Cultural Investment Holdings or generate 29.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. China Telecom Corp
Performance |
Timeline |
Cultural Investment |
China Telecom Corp |
Cultural Investment and China Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and China Telecom
The main advantage of trading using opposite Cultural Investment and China Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
China Telecom vs. Henan Shuanghui Investment | China Telecom vs. Luyin Investment Group | China Telecom vs. Cultural Investment Holdings | China Telecom vs. Guangdong Jingyi Metal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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