Correlation Between Hanison Construction and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both Hanison Construction 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 Hanison Construction and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanison Construction Holdings and Citic Telecom International, you can compare the effects of market volatilities on Hanison Construction 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 Hanison Construction with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanison Construction and Citic Telecom.
Diversification Opportunities for Hanison Construction and Citic Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanison and Citic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanison Construction Holdings 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 Hanison Construction 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 Hanison Construction Holdings 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 Hanison Construction i.e., Hanison Construction and Citic Telecom go up and down completely randomly.
Pair Corralation between Hanison Construction and Citic Telecom
If you would invest 26.00 in Citic Telecom International on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Citic Telecom International or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanison Construction Holdings vs. Citic Telecom International
Performance |
| Timeline |
| Hanison Construction |
| Citic Telecom Intern |
Hanison Construction and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanison Construction and Citic Telecom
The main advantage of trading using opposite Hanison Construction and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanison Construction 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.| Hanison Construction vs. Air New Zealand | Hanison Construction vs. Taiwan Semiconductor Manufacturing | Hanison Construction vs. ON SEMICONDUCTOR | Hanison Construction vs. Norwegian Air Shuttle |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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