Correlation Between Citic Telecom and YAMATO HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and YAMATO HOLDINGS 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 YAMATO HOLDINGS 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 YAMATO HOLDINGS, you can compare the effects of market volatilities on Citic Telecom and YAMATO HOLDINGS 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 YAMATO HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and YAMATO HOLDINGS.
Diversification Opportunities for Citic Telecom and YAMATO HOLDINGS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citic and YAMATO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and YAMATO HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YAMATO HOLDINGS 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 YAMATO HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YAMATO HOLDINGS has no effect on the direction of Citic Telecom i.e., Citic Telecom and YAMATO HOLDINGS go up and down completely randomly.
Pair Corralation between Citic Telecom and YAMATO HOLDINGS
If you would invest 2,100 in YAMATO HOLDINGS on October 30, 2024 and sell it today you would earn a total of 0.00 from holding YAMATO HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Telecom International vs. YAMATO HOLDINGS
Performance |
| Timeline |
| Citic Telecom Intern |
| YAMATO HOLDINGS |
Citic Telecom and YAMATO HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Telecom and YAMATO HOLDINGS
The main advantage of trading using opposite Citic Telecom and YAMATO HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, YAMATO HOLDINGS 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 YAMATO HOLDINGS will offset losses from the drop in YAMATO HOLDINGS's long position.| Citic Telecom vs. Taylor Morrison Home | Citic Telecom vs. Elmos Semiconductor SE | Citic Telecom vs. ON SEMICONDUCTOR | Citic Telecom vs. Addus HomeCare |
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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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