Correlation Between CITIC Telecom and Anfield Resources
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and Anfield Resources 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 CITIC Telecom and Anfield Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Telecom International and Anfield Resources, you can compare the effects of market volatilities on CITIC Telecom and Anfield Resources 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 CITIC Telecom with a short position of Anfield Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and Anfield Resources.
Diversification Opportunities for CITIC Telecom and Anfield Resources
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CITIC and Anfield is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and Anfield Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Resources and CITIC Telecom 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 CITIC Telecom International are associated (or correlated) with Anfield Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Resources has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and Anfield Resources go up and down completely randomly.
Pair Corralation between CITIC Telecom and Anfield Resources
Assuming the 90 days horizon CITIC Telecom International is expected to generate 0.34 times more return on investment than Anfield Resources. However, CITIC Telecom International is 2.94 times less risky than Anfield Resources. It trades about 0.02 of its potential returns per unit of risk. Anfield Resources is currently generating about -0.19 per unit of risk. If you would invest 27.00 in CITIC Telecom International on September 25, 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 | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
CITIC Telecom International vs. Anfield Resources
Performance |
Timeline |
CITIC Telecom Intern |
Anfield Resources |
CITIC Telecom and Anfield Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Telecom and Anfield Resources
The main advantage of trading using opposite CITIC Telecom and Anfield Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, Anfield Resources 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 Anfield Resources will offset losses from the drop in Anfield Resources' long position.CITIC Telecom vs. Bumrungrad Hospital Public | CITIC Telecom vs. Vulcan Materials | CITIC Telecom vs. DiamondRock Hospitality | CITIC Telecom vs. The Yokohama Rubber |
Anfield Resources vs. MAROC TELECOM | Anfield Resources vs. Cogent Communications Holdings | Anfield Resources vs. CITIC Telecom International | Anfield Resources vs. Zoom Video Communications |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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