Correlation Between SCANDMEDICAL SOLDK-040 and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Citic Telecom International, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Citic Telecom.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Citic Telecom
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCANDMEDICAL and Citic is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Citic Telecom go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and Citic Telecom
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 1.74 times more return on investment than Citic Telecom. However, SCANDMEDICAL SOLDK-040 is 1.74 times more volatile than Citic Telecom International. It trades about 0.09 of its potential returns per unit of risk. Citic Telecom International is currently generating about 0.01 per unit of risk. If you would invest 74.00 in SCANDMEDICAL SOLDK 040 on September 1, 2024 and sell it today you would earn a total of 5.00 from holding SCANDMEDICAL SOLDK 040 or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Citic Telecom International
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Citic Telecom Intern |
SCANDMEDICAL SOLDK-040 and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and Citic Telecom
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.| SCANDMEDICAL SOLDK-040 vs. HF SINCLAIR P | SCANDMEDICAL SOLDK-040 vs. Addus HomeCare | SCANDMEDICAL SOLDK-040 vs. Tri Pointe Homes | SCANDMEDICAL SOLDK-040 vs. SEALED AIR |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |