Correlation Between CITIC Telecom and Clearside Biomedical
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Clearside Biomedical 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 Clearside Biomedical 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 Clearside Biomedical, you can compare the effects of market volatilities on CITIC Telecom and Clearside Biomedical 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 Clearside Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Clearside Biomedical.
Diversification Opportunities for CITIC Telecom and Clearside Biomedical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Clearside is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and Clearside Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearside Biomedical 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 Clearside Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearside Biomedical has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and Clearside Biomedical go up and down completely randomly.
Pair Corralation between CITIC Telecom and Clearside Biomedical
Assuming the 90 days horizon CITIC Telecom International is expected to generate 0.84 times more return on investment than Clearside Biomedical. However, CITIC Telecom International is 1.18 times less risky than Clearside Biomedical. It trades about 0.03 of its potential returns per unit of risk. Clearside Biomedical is currently generating about 0.02 per unit of risk. If you would invest 23.00 in CITIC Telecom International on December 10, 2024 and sell it today you would earn a total of 5.00 from holding CITIC Telecom International or generate 21.74% 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. Clearside Biomedical
Performance |
| Timeline |
| CITIC Telecom Intern |
| Clearside Biomedical |
CITIC Telecom and Clearside Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Telecom and Clearside Biomedical
The main advantage of trading using opposite CITIC Telecom and Clearside Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Clearside Biomedical 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 Clearside Biomedical will offset losses from the drop in Clearside Biomedical's long position.| CITIC Telecom vs. ScanSource | CITIC Telecom vs. National Health Investors | CITIC Telecom vs. HEALTHSTREAM | CITIC Telecom vs. EPSILON HEALTHCARE LTD |
| Clearside Biomedical vs. KIMBALL ELECTRONICS | Clearside Biomedical vs. MUTUIONLINE | Clearside Biomedical vs. Nucletron Electronic Aktiengesellschaft | Clearside Biomedical vs. GungHo Online Entertainment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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