Correlation Between Citic Telecom and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on Citic Telecom and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and Apollo Investment.
Diversification Opportunities for Citic Telecom and Apollo Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Apollo is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Citic Telecom i.e., Citic Telecom and Apollo Investment go up and down completely randomly.
Pair Corralation between Citic Telecom and Apollo Investment
Assuming the 90 days trading horizon Citic Telecom International is expected to generate 5.84 times more return on investment than Apollo Investment. However, Citic Telecom is 5.84 times more volatile than Apollo Investment Corp. It trades about 0.07 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.08 per unit of risk. If you would invest 3.91 in Citic Telecom International on September 13, 2024 and sell it today you would earn a total of 23.09 from holding Citic Telecom International or generate 590.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Telecom International vs. Apollo Investment Corp
Performance |
| Timeline |
| Citic Telecom Intern |
| Apollo Investment Corp |
Citic Telecom and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and Apollo Investment
The main advantage of trading using opposite Citic Telecom and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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