Correlation Between CITIC Telecom and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Comba 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 CITIC Telecom and Comba Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Telecom International and Comba Telecom Systems, you can compare the effects of market volatilities on CITIC Telecom and Comba 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 CITIC Telecom with a short position of Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Comba Telecom.
Diversification Opportunities for CITIC Telecom and Comba Telecom
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Comba is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems and CITIC 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 CITIC Telecom International are associated (or correlated) with Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and Comba Telecom go up and down completely randomly.
Pair Corralation between CITIC Telecom and Comba Telecom
Assuming the 90 days horizon CITIC Telecom International is expected to generate 1.54 times more return on investment than Comba Telecom. However, CITIC Telecom is 1.54 times more volatile than Comba Telecom Systems. It trades about 0.07 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about 0.06 per unit of risk. If you would invest 10.00 in CITIC Telecom International on September 25, 2024 and sell it today you would earn a total of 17.00 from holding CITIC Telecom International or generate 170.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CITIC Telecom International vs. Comba Telecom Systems
Performance |
Timeline |
CITIC Telecom Intern |
Comba Telecom Systems |
CITIC Telecom and Comba Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Telecom and Comba Telecom
The main advantage of trading using opposite CITIC Telecom and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Comba 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.CITIC Telecom vs. Bumrungrad Hospital Public | CITIC Telecom vs. Vulcan Materials | CITIC Telecom vs. DiamondRock Hospitality | CITIC Telecom vs. The Yokohama Rubber |
Comba Telecom vs. Harmony Gold Mining | Comba Telecom vs. GREENX METALS LTD | Comba Telecom vs. KENNAMETAL INC | Comba Telecom vs. Platinum Investment Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |