Correlation Between Citic Telecom and YAMAHA CORP
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and YAMAHA CORP 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 YAMAHA CORP 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 YAMAHA P, you can compare the effects of market volatilities on Citic Telecom and YAMAHA CORP 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 YAMAHA CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and YAMAHA CORP.
Diversification Opportunities for Citic Telecom and YAMAHA CORP
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citic and YAMAHA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and YAMAHA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YAMAHA 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 YAMAHA CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YAMAHA CORP has no effect on the direction of Citic Telecom i.e., Citic Telecom and YAMAHA CORP go up and down completely randomly.
Pair Corralation between Citic Telecom and YAMAHA CORP
Assuming the 90 days trading horizon Citic Telecom is expected to generate 1.12 times less return on investment than YAMAHA CORP. In addition to that, Citic Telecom is 1.19 times more volatile than YAMAHA P. It trades about 0.08 of its total potential returns per unit of risk. YAMAHA P is currently generating about 0.11 per unit of volatility. If you would invest 672.00 in YAMAHA P on September 5, 2024 and sell it today you would earn a total of 31.00 from holding YAMAHA P or generate 4.61% 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. YAMAHA P
Performance |
| Timeline |
| Citic Telecom Intern |
| YAMAHA CORP |
Citic Telecom and YAMAHA CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and YAMAHA CORP
The main advantage of trading using opposite Citic Telecom and YAMAHA CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, YAMAHA CORP 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 YAMAHA CORP will offset losses from the drop in YAMAHA CORP's long position.| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
| YAMAHA CORP vs. TOTAL GABON | YAMAHA CORP vs. Walgreens Boots Alliance | YAMAHA CORP 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |