Correlation Between INTERSHOP Communications and CITIC Telecom
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and CITIC Telecom International, you can compare the effects of market volatilities on INTERSHOP Communications 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 INTERSHOP Communications with a short position of CITIC Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and CITIC Telecom.
Diversification Opportunities for INTERSHOP Communications and CITIC Telecom
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INTERSHOP and CITIC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie 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 INTERSHOP Communications 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 INTERSHOP Communications Aktiengesellschaft 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 INTERSHOP Communications i.e., INTERSHOP Communications and CITIC Telecom go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and CITIC Telecom
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the CITIC Telecom. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.8 times less risky than CITIC Telecom. The stock trades about -0.04 of its potential returns per unit of risk. The CITIC Telecom International is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 27.00 in CITIC Telecom International on September 12, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. CITIC Telecom International
Performance |
| Timeline |
| INTERSHOP Communications |
| CITIC Telecom Intern |
INTERSHOP Communications and CITIC Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and CITIC Telecom
The main advantage of trading using opposite INTERSHOP Communications and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications 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.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| CITIC Telecom vs. Superior Plus Corp | CITIC Telecom vs. SIVERS SEMICONDUCTORS AB | CITIC Telecom vs. Norsk Hydro ASA | CITIC Telecom vs. Reliance Steel Aluminum |
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.
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