Correlation Between Citic Telecom and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Citic Telecom and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and EPSILON HEALTHCARE.
Diversification Opportunities for Citic Telecom and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citic and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD 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 EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of Citic Telecom i.e., Citic Telecom and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Citic Telecom and EPSILON HEALTHCARE
If you would invest 27.00 in Citic Telecom International on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Citic Telecom International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Citic Telecom International vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Citic Telecom Intern |
| EPSILON HEALTHCARE LTD |
Citic Telecom and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and EPSILON HEALTHCARE
The main advantage of trading using opposite Citic Telecom and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, EPSILON HEALTHCARE 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| Citic Telecom vs. MCEWEN MINING INC | Citic Telecom vs. ARDAGH METAL PACDL 0001 | Citic Telecom vs. MAGNUM MINING EXP | Citic Telecom vs. Western Copper and |
| EPSILON HEALTHCARE vs. TIANDE CHEMICAL | EPSILON HEALTHCARE vs. Citic Telecom International | EPSILON HEALTHCARE vs. British American Tobacco | EPSILON HEALTHCARE vs. Charter Communications |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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