Correlation Between Citic Telecom and Lendlease
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on Citic Telecom and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and Lendlease.
Diversification Opportunities for Citic Telecom and Lendlease
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citic and Lendlease is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Citic Telecom i.e., Citic Telecom and Lendlease go up and down completely randomly.
Pair Corralation between Citic Telecom and Lendlease
Assuming the 90 days trading horizon Citic Telecom International is expected to generate 3.81 times more return on investment than Lendlease. However, Citic Telecom is 3.81 times more volatile than Lendlease Group. It trades about 0.07 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.01 per unit of risk. If you would invest 4.24 in Citic Telecom International on November 7, 2024 and sell it today you would earn a total of 22.76 from holding Citic Telecom International or generate 536.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Telecom International vs. Lendlease Group
Performance |
| Timeline |
| Citic Telecom Intern |
| Lendlease Group |
Citic Telecom and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and Lendlease
The main advantage of trading using opposite Citic Telecom and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Citic Telecom vs. JLF INVESTMENT | Citic Telecom vs. BORR DRILLING NEW | Citic Telecom vs. Major Drilling Group | Citic Telecom vs. Pembina Pipeline Corp |
| Lendlease vs. SILVER BULLET DATA | Lendlease vs. Wizz Air Holdings | Lendlease vs. SOGECLAIR SA INH | Lendlease vs. DICKER DATA LTD |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |