Correlation Between FANDIFI TECHNOLOGY and CITIC Telecom
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY and CITIC Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and CITIC Telecom International, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY with a short position of CITIC Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and CITIC Telecom.
Diversification Opportunities for FANDIFI TECHNOLOGY and CITIC Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and CITIC Telecom go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and CITIC Telecom
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 7.12 times more return on investment than CITIC Telecom. However, FANDIFI TECHNOLOGY is 7.12 times more volatile than CITIC Telecom International. It trades about 0.05 of its potential returns per unit of risk. CITIC Telecom International is currently generating about 0.04 per unit of risk. If you would invest 2.70 in FANDIFI TECHNOLOGY P on December 5, 2024 and sell it today you would lose (2.65) from holding FANDIFI TECHNOLOGY P or give up 98.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. CITIC Telecom International
Performance |
Timeline |
FANDIFI TECHNOLOGY |
CITIC Telecom Intern |
FANDIFI TECHNOLOGY and CITIC Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FANDIFI TECHNOLOGY and CITIC Telecom
The main advantage of trading using opposite FANDIFI TECHNOLOGY and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY 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.FANDIFI TECHNOLOGY vs. MAGIC SOFTWARE ENTR | FANDIFI TECHNOLOGY vs. Brockhaus Capital Management | FANDIFI TECHNOLOGY vs. Axway Software SA | FANDIFI TECHNOLOGY vs. Jupiter Fund Management |
CITIC Telecom vs. PULSION Medical Systems | CITIC Telecom vs. Inspire Medical Systems | CITIC Telecom vs. Genertec Universal Medical | CITIC Telecom vs. KINGBOARD CHEMICAL |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
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 | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |