Correlation Between SAFETY MEDICAL and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both SAFETY MEDICAL 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 SAFETY MEDICAL and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFETY MEDICAL PROD and Citic Telecom International, you can compare the effects of market volatilities on SAFETY MEDICAL 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 SAFETY MEDICAL with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFETY MEDICAL and Citic Telecom.
Diversification Opportunities for SAFETY MEDICAL and Citic Telecom
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAFETY and Citic is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SAFETY MEDICAL PROD 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 SAFETY MEDICAL 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 SAFETY MEDICAL PROD 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 SAFETY MEDICAL i.e., SAFETY MEDICAL and Citic Telecom go up and down completely randomly.
Pair Corralation between SAFETY MEDICAL and Citic Telecom
Assuming the 90 days trading horizon SAFETY MEDICAL PROD is expected to under-perform the Citic Telecom. In addition to that, SAFETY MEDICAL is 1.51 times more volatile than Citic Telecom International. It trades about -0.25 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 September 1, 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 |
SAFETY MEDICAL PROD vs. Citic Telecom International
Performance |
| Timeline |
| SAFETY MEDICAL PROD |
| Citic Telecom Intern |
SAFETY MEDICAL and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFETY MEDICAL and Citic Telecom
The main advantage of trading using opposite SAFETY MEDICAL and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFETY MEDICAL 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.| SAFETY MEDICAL vs. MOLSON RS BEVERAGE | SAFETY MEDICAL vs. Molson Coors Beverage | SAFETY MEDICAL vs. ADRIATIC METALS LS 013355 | SAFETY MEDICAL vs. United Insurance Holdings |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |