Correlation Between Comba Telecom and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both Comba Telecom 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 Comba Telecom and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comba Telecom Systems and Citic Telecom International, you can compare the effects of market volatilities on Comba Telecom 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 Comba Telecom with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comba Telecom and Citic Telecom.
Diversification Opportunities for Comba Telecom and Citic Telecom
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comba and Citic is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Comba Telecom Systems 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 Comba 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 Comba Telecom Systems 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 Comba Telecom i.e., Comba Telecom and Citic Telecom go up and down completely randomly.
Pair Corralation between Comba Telecom and Citic Telecom
Assuming the 90 days trading horizon Comba Telecom Systems is expected to under-perform the Citic Telecom. In addition to that, Comba Telecom is 1.88 times more volatile than Citic Telecom International. It trades about -0.07 of its total potential returns per unit of risk. Citic Telecom International is currently generating about 0.01 per unit of volatility. If you would invest 26.00 in Citic Telecom International on August 31, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comba Telecom Systems vs. Citic Telecom International
Performance |
| Timeline |
| Comba Telecom Systems |
| Citic Telecom Intern |
Comba Telecom and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comba Telecom and Citic Telecom
The main advantage of trading using opposite Comba Telecom and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comba Telecom 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.| Comba Telecom vs. MeVis Medical Solutions | Comba Telecom vs. Carsales | Comba Telecom vs. GungHo Online Entertainment | Comba Telecom vs. SAFETY MEDICAL PROD |
| Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc | Citic Telecom vs. Apple Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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