Correlation Between Citic Telecom and Boyaa Interactive
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and Boyaa Interactive 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 Boyaa Interactive 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 Boyaa Interactive International, you can compare the effects of market volatilities on Citic Telecom and Boyaa Interactive 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 Boyaa Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and Boyaa Interactive.
Diversification Opportunities for Citic Telecom and Boyaa Interactive
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citic and Boyaa is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and Boyaa Interactive Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyaa Interactive 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 Boyaa Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyaa Interactive has no effect on the direction of Citic Telecom i.e., Citic Telecom and Boyaa Interactive go up and down completely randomly.
Pair Corralation between Citic Telecom and Boyaa Interactive
Assuming the 90 days trading horizon Citic Telecom is expected to generate 27.91 times less return on investment than Boyaa Interactive. But when comparing it to its historical volatility, Citic Telecom International is 3.49 times less risky than Boyaa Interactive. It trades about 0.08 of its potential returns per unit of risk. Boyaa Interactive International is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Boyaa Interactive International on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Boyaa Interactive International or generate 209.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Telecom International vs. Boyaa Interactive Internationa
Performance |
| Timeline |
| Citic Telecom Intern |
| Boyaa Interactive |
Citic Telecom and Boyaa Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and Boyaa Interactive
The main advantage of trading using opposite Citic Telecom and Boyaa Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, Boyaa Interactive 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 Boyaa Interactive will offset losses from the drop in Boyaa Interactive's long position.| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
| Boyaa Interactive vs. Nintendo Co | Boyaa Interactive vs. Nintendo Co | Boyaa Interactive vs. Sea Limited | Boyaa Interactive vs. Take Two Interactive Software |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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