Correlation Between Cairo Communication and CITIC SECURITIES-H-
Can any of the company-specific risk be diversified away by investing in both Cairo Communication and CITIC SECURITIES-H- 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 Cairo Communication and CITIC SECURITIES-H- into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and CITIC SECURITIES H , you can compare the effects of market volatilities on Cairo Communication and CITIC SECURITIES-H- 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 Cairo Communication with a short position of CITIC SECURITIES-H-. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and CITIC SECURITIES-H-.
Diversification Opportunities for Cairo Communication and CITIC SECURITIES-H-
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cairo and CITIC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA and CITIC SECURITIES H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC SECURITIES-H- and Cairo Communication 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 Cairo Communication SpA are associated (or correlated) with CITIC SECURITIES-H-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC SECURITIES-H- has no effect on the direction of Cairo Communication i.e., Cairo Communication and CITIC SECURITIES-H- go up and down completely randomly.
Pair Corralation between Cairo Communication and CITIC SECURITIES-H-
Assuming the 90 days trading horizon Cairo Communication SpA is expected to generate 0.92 times more return on investment than CITIC SECURITIES-H-. However, Cairo Communication SpA is 1.09 times less risky than CITIC SECURITIES-H-. It trades about 0.18 of its potential returns per unit of risk. CITIC SECURITIES H is currently generating about 0.0 per unit of risk. If you would invest 237.00 in Cairo Communication SpA on December 22, 2024 and sell it today you would earn a total of 46.00 from holding Cairo Communication SpA or generate 19.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cairo Communication SpA vs. CITIC SECURITIES H
Performance |
Timeline |
Cairo Communication SpA |
CITIC SECURITIES-H- |
Cairo Communication and CITIC SECURITIES-H- Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cairo Communication and CITIC SECURITIES-H-
The main advantage of trading using opposite Cairo Communication and CITIC SECURITIES-H- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication position performs unexpectedly, CITIC SECURITIES-H- 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 SECURITIES-H- will offset losses from the drop in CITIC SECURITIES-H-'s long position.Cairo Communication vs. INDO RAMA SYNTHETIC | Cairo Communication vs. Cellnex Telecom SA | Cairo Communication vs. Strong Petrochemical Holdings | Cairo Communication vs. Singapore Telecommunications Limited |
CITIC SECURITIES-H- vs. ADRIATIC METALS LS 013355 | CITIC SECURITIES-H- vs. ON SEMICONDUCTOR | CITIC SECURITIES-H- vs. NTG Nordic Transport | CITIC SECURITIES-H- vs. ARDAGH METAL PACDL 0001 |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |