Correlation Between CANON MARKETING and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both CANON MARKETING and Citic Telecom 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 CANON MARKETING and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CANON MARKETING JP and Citic Telecom International, you can compare the effects of market volatilities on CANON MARKETING and Citic Telecom 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 CANON MARKETING with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of CANON MARKETING and Citic Telecom.
Diversification Opportunities for CANON MARKETING and Citic Telecom
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CANON and Citic is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CANON MARKETING JP and Citic Telecom International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Telecom Intern and CANON MARKETING 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 CANON MARKETING JP are associated (or correlated) with Citic Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Telecom Intern has no effect on the direction of CANON MARKETING i.e., CANON MARKETING and Citic Telecom go up and down completely randomly.
Pair Corralation between CANON MARKETING and Citic Telecom
Assuming the 90 days trading horizon CANON MARKETING JP is expected to under-perform the Citic Telecom. But the stock apears to be less risky and, when comparing its historical volatility, CANON MARKETING JP is 2.43 times less risky than Citic Telecom. The stock trades about -0.15 of its potential returns per unit of risk. The Citic Telecom International is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Citic Telecom International on October 28, 2024 and sell it today you would lose (1.00) from holding Citic Telecom International or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CANON MARKETING JP vs. Citic Telecom International
Performance |
| Timeline |
| CANON MARKETING JP |
| Citic Telecom Intern |
CANON MARKETING and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CANON MARKETING and Citic Telecom
The main advantage of trading using opposite CANON MARKETING and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CANON MARKETING position performs unexpectedly, Citic Telecom 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 Citic Telecom will offset losses from the drop in Citic Telecom's long position.| CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc | CANON MARKETING vs. Apple Inc |
| Citic Telecom vs. Keck Seng Investments | Citic Telecom vs. ECHO INVESTMENT ZY | Citic Telecom vs. Japan Asia Investment | Citic Telecom vs. DFS Furniture PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |