Correlation Between CITIC Telecom and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Cogent Communications 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 Cogent Communications 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 Cogent Communications Holdings, you can compare the effects of market volatilities on CITIC Telecom and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Cogent Communications.
Diversification Opportunities for CITIC Telecom and Cogent Communications
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Cogent is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and Cogent Communications go up and down completely randomly.
Pair Corralation between CITIC Telecom and Cogent Communications
Assuming the 90 days horizon CITIC Telecom International is expected to under-perform the Cogent Communications. In addition to that, CITIC Telecom is 1.39 times more volatile than Cogent Communications Holdings. It trades about -0.1 of its total potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.1 per unit of volatility. If you would invest 7,200 in Cogent Communications Holdings on October 25, 2024 and sell it today you would lose (200.00) from holding Cogent Communications Holdings or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Telecom International vs. Cogent Communications Holdings
Performance |
| Timeline |
| CITIC Telecom Intern |
| Cogent Communications |
CITIC Telecom and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Telecom and Cogent Communications
The main advantage of trading using opposite CITIC Telecom and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| CITIC Telecom vs. GRUPO CARSO A1 | CITIC Telecom vs. REMEDY ENTERTAINMENT OYJ | CITIC Telecom vs. Grupo Carso SAB | CITIC Telecom vs. ANTA SPORTS PRODUCT |
| Cogent Communications vs. HUTCHISON TELECOMM | Cogent Communications vs. Align Technology | Cogent Communications vs. Chengdu PUTIAN Telecommunications | Cogent Communications 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |