Correlation Between Citic Telecom and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and HYBRIGENICS 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 HYBRIGENICS 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 HYBRIGENICS A , you can compare the effects of market volatilities on Citic Telecom and HYBRIGENICS 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 HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and HYBRIGENICS.
Diversification Opportunities for Citic Telecom and HYBRIGENICS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citic and HYBRIGENICS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A 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 HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Citic Telecom i.e., Citic Telecom and HYBRIGENICS go up and down completely randomly.
Pair Corralation between Citic Telecom and HYBRIGENICS
Assuming the 90 days trading horizon Citic Telecom International is expected to generate 0.77 times more return on investment than HYBRIGENICS. However, Citic Telecom International is 1.3 times less risky than HYBRIGENICS. It trades about 0.06 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about -0.01 per unit of risk. If you would invest 11.00 in Citic Telecom International on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Citic Telecom International or generate 145.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Telecom International vs. HYBRIGENICS A
Performance |
| Timeline |
| Citic Telecom Intern |
| HYBRIGENICS A |
Citic Telecom and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and HYBRIGENICS
The main advantage of trading using opposite Citic Telecom and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
| HYBRIGENICS vs. TOTAL GABON | HYBRIGENICS vs. Walgreens Boots Alliance | HYBRIGENICS vs. Peak Resources 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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