Correlation Between CITIC Telecom and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on CITIC Telecom and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Hyster Yale.
Diversification Opportunities for CITIC Telecom and Hyster Yale
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CITIC and Hyster is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and Hyster Yale go up and down completely randomly.
Pair Corralation between CITIC Telecom and Hyster Yale
Assuming the 90 days horizon CITIC Telecom International is expected to generate 2.96 times more return on investment than Hyster Yale. However, CITIC Telecom is 2.96 times more volatile than Hyster Yale Materials Handling. It trades about 0.07 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.04 per unit of risk. If you would invest 10.00 in CITIC Telecom International on September 15, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Telecom International vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| CITIC Telecom Intern |
| Hyster Yale Materials |
CITIC Telecom and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Telecom and Hyster Yale
The main advantage of trading using opposite CITIC Telecom and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| CITIC Telecom vs. Alfa Financial Software | CITIC Telecom vs. UPDATE SOFTWARE | CITIC Telecom vs. Guidewire Software | CITIC Telecom vs. Playtech plc |
| Hyster Yale vs. MIRAMAR HOTEL INV | Hyster Yale vs. Pembina Pipeline Corp | Hyster Yale vs. Wyndham Hotels Resorts | Hyster Yale vs. CITIC Telecom International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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