Correlation Between Citic Telecom and Zoom Video
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and Zoom Video 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 Zoom Video 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 Zoom Video Communications, you can compare the effects of market volatilities on Citic Telecom and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and Zoom Video.
Diversification Opportunities for Citic Telecom and Zoom Video
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citic and Zoom is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Citic Telecom i.e., Citic Telecom and Zoom Video go up and down completely randomly.
Pair Corralation between Citic Telecom and Zoom Video
Assuming the 90 days trading horizon Citic Telecom is expected to generate 1.4 times less return on investment than Zoom Video. In addition to that, Citic Telecom is 1.55 times more volatile than Zoom Video Communications. It trades about 0.06 of its total potential returns per unit of risk. Zoom Video Communications is currently generating about 0.14 per unit of volatility. If you would invest 7,788 in Zoom Video Communications on November 9, 2024 and sell it today you would earn a total of 507.00 from holding Zoom Video Communications or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citic Telecom International vs. Zoom Video Communications
Performance |
| Timeline |
| Citic Telecom Intern |
| Zoom Video Communications |
Citic Telecom and Zoom Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and Zoom Video
The main advantage of trading using opposite Citic Telecom and Zoom Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, Zoom Video 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 Zoom Video will offset losses from the drop in Zoom Video's long position.| Citic Telecom vs. BJs Wholesale Club | Citic Telecom vs. Calibre Mining Corp | Citic Telecom vs. MARKET VECTR RETAIL | Citic Telecom vs. H2O Retailing |
| Zoom Video vs. SPARTAN STORES | Zoom Video vs. China Resources Beer | Zoom Video vs. BOSTON BEER A | Zoom Video vs. SAN MIGUEL BREWERY |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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