Correlation Between MEITUAN UNSPADR/2B and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEITUAN UNSPADR2B and Citic Telecom International, you can compare the effects of market volatilities on MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEITUAN UNSPADR/2B and Citic Telecom.
Diversification Opportunities for MEITUAN UNSPADR/2B and Citic Telecom
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MEITUAN and Citic is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MEITUAN UNSPADR2B 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 MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR2B 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 MEITUAN UNSPADR/2B i.e., MEITUAN UNSPADR/2B and Citic Telecom go up and down completely randomly.
Pair Corralation between MEITUAN UNSPADR/2B and Citic Telecom
Assuming the 90 days trading horizon MEITUAN UNSPADR2B is expected to generate 1.36 times more return on investment than Citic Telecom. However, MEITUAN UNSPADR/2B is 1.36 times more volatile than Citic Telecom International. It trades about 0.03 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 3,700 in MEITUAN UNSPADR2B on December 30, 2024 and sell it today you would earn a total of 120.00 from holding MEITUAN UNSPADR2B or generate 3.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
MEITUAN UNSPADR2B vs. Citic Telecom International
Performance |
Timeline |
MEITUAN UNSPADR/2B |
Citic Telecom Intern |
MEITUAN UNSPADR/2B and Citic Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEITUAN UNSPADR/2B and Citic Telecom
The main advantage of trading using opposite MEITUAN UNSPADR/2B and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEITUAN UNSPADR/2B 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.MEITUAN UNSPADR/2B vs. Rayonier Advanced Materials | MEITUAN UNSPADR/2B vs. SANOK RUBBER ZY | MEITUAN UNSPADR/2B vs. THRACE PLASTICS | MEITUAN UNSPADR/2B vs. ACCSYS TECHPLC EO |
Citic Telecom vs. UMC Electronics Co | Citic Telecom vs. KIMBALL ELECTRONICS | Citic Telecom vs. STORE ELECTRONIC | Citic Telecom vs. PLAYMATES TOYS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |