Correlation Between CITIC and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both CITIC and MAVEN WIRELESS 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 and MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC LTD ADR5 and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on CITIC and MAVEN WIRELESS 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 with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC and MAVEN WIRELESS.
Diversification Opportunities for CITIC and MAVEN WIRELESS
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between CITIC and MAVEN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding CITIC LTD ADR5 and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and CITIC 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 LTD ADR5 are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of CITIC i.e., CITIC and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between CITIC and MAVEN WIRELESS
Assuming the 90 days trading horizon CITIC is expected to generate 2.96 times less return on investment than MAVEN WIRELESS. But when comparing it to its historical volatility, CITIC LTD ADR5 is 3.15 times less risky than MAVEN WIRELESS. It trades about 0.2 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 86.00 in MAVEN WIRELESS SWEDEN on November 8, 2024 and sell it today you would earn a total of 14.00 from holding MAVEN WIRELESS SWEDEN or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CITIC LTD ADR5 vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| CITIC LTD ADR5 |
| MAVEN WIRELESS SWEDEN |
CITIC and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC and MAVEN WIRELESS
The main advantage of trading using opposite CITIC and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| CITIC vs. Flutter Entertainment PLC | CITIC vs. ANTA SPORTS PRODUCT | CITIC vs. Hemisphere Energy Corp | CITIC vs. Casio Computer CoLtd |
| MAVEN WIRELESS vs. CEOTRONICS | MAVEN WIRELESS vs. DATATEC LTD 2 | MAVEN WIRELESS vs. SIEM OFFSHORE NEW | MAVEN WIRELESS vs. RCI Hospitality Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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