Correlation Between CITIC Telecom and Hyster-Yale Materials
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Hyster-Yale Materials 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 Materials 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 Materials 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 Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Hyster-Yale Materials.
Diversification Opportunities for CITIC Telecom and Hyster-Yale Materials
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Hyster-Yale is -0.19. 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 Materials. 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 Materials go up and down completely randomly.
Pair Corralation between CITIC Telecom and Hyster-Yale Materials
Assuming the 90 days horizon CITIC Telecom is expected to generate 27.03 times less return on investment than Hyster-Yale Materials. In addition to that, CITIC Telecom is 1.13 times more volatile than Hyster Yale Materials Handling. It trades about 0.01 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.28 per unit of volatility. If you would invest 4,780 in Hyster Yale Materials Handling on October 23, 2024 and sell it today you would earn a total of 370.00 from holding Hyster Yale Materials Handling or generate 7.74% 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. Hyster Yale Materials Handling
Performance |
| Timeline |
| CITIC Telecom Intern |
| Hyster Yale Materials |
CITIC Telecom and Hyster-Yale Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Telecom and Hyster-Yale Materials
The main advantage of trading using opposite CITIC Telecom and Hyster-Yale Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Hyster-Yale Materials 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 Materials will offset losses from the drop in Hyster-Yale Materials' long position.| CITIC Telecom vs. ADDUS HOMECARE | CITIC Telecom vs. Coor Service Management | CITIC Telecom vs. Hisense Home Appliances | CITIC Telecom vs. Q2M Managementberatung AG |
| Hyster-Yale Materials vs. AB Volvo | Hyster-Yale Materials vs. PACCAR Inc | Hyster-Yale Materials vs. KION Group AG | Hyster-Yale Materials vs. Sinotruk Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |