Correlation Between CITIC Telecom and POLAR POWER
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and POLAR POWER 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 POLAR POWER 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 POLAR POWER INC, you can compare the effects of market volatilities on CITIC Telecom and POLAR POWER 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 POLAR POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and POLAR POWER.
Diversification Opportunities for CITIC Telecom and POLAR POWER
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CITIC and POLAR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and POLAR POWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POLAR POWER INC 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 POLAR POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POLAR POWER INC has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and POLAR POWER go up and down completely randomly.
Pair Corralation between CITIC Telecom and POLAR POWER
If you would invest 27.00 in CITIC Telecom International on September 24, 2024 and sell it today you would earn a total of 2.00 from holding CITIC Telecom International or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CITIC Telecom International vs. POLAR POWER INC
Performance |
| Timeline |
| CITIC Telecom Intern |
| POLAR POWER INC |
CITIC Telecom and POLAR POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Telecom and POLAR POWER
The main advantage of trading using opposite CITIC Telecom and POLAR POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, POLAR POWER 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 POLAR POWER will offset losses from the drop in POLAR POWER's long position.| CITIC Telecom vs. T Mobile | CITIC Telecom vs. China Mobile Limited | CITIC Telecom vs. Verizon Communications | CITIC Telecom vs. ATT Inc |
| POLAR POWER vs. Fast Retailing Co | POLAR POWER vs. Chunghwa Telecom Co | POLAR POWER vs. FLOW TRADERS LTD | POLAR POWER 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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