Correlation Between COPLAND ROAD and CHINA TELECOM

Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD 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 COPLAND ROAD and CHINA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COPLAND ROAD CAPITAL and CHINA TELECOM H , you can compare the effects of market volatilities on COPLAND ROAD 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 COPLAND ROAD with a short position of CHINA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and CHINA TELECOM.

Diversification Opportunities for COPLAND ROAD and CHINA TELECOM

-0.32

Correlation Coefficient

COPLAND ROAD  CHINA TELECOM

Very good diversification

The 3 months correlation between COPLAND and CHINA is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL 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 COPLAND ROAD 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 COPLAND ROAD CAPITAL 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 COPLAND ROAD i.e., COPLAND ROAD and CHINA TELECOM go up and down completely randomly.

Pair Corralation between COPLAND ROAD and CHINA TELECOM

Assuming the 90 days horizon COPLAND ROAD is expected to generate 4.43 times less return on investment than CHINA TELECOM. But when comparing it to its historical volatility, COPLAND ROAD CAPITAL is 1.59 times less risky than CHINA TELECOM. It trades about 0.01 of its potential returns per unit of risk. CHINA TELECOM H is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  50.00  in CHINA TELECOM H on April 20, 2025 and sell it today you would earn a total of  2.00  from holding CHINA TELECOM H or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

COPLAND ROAD CAPITAL  vs.  CHINA TELECOM H

COPLAND ROAD CAPITAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days COPLAND ROAD CAPITAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COPLAND ROAD is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CHINA TELECOM H

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CHINA TELECOM H are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, CHINA TELECOM may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with COPLAND ROAD and CHINA TELECOM

The main advantage of trading using opposite COPLAND ROAD and CHINA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD 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.

The idea behind COPLAND ROAD CAPITAL and CHINA TELECOM H pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.