Correlation Between CITIC Telecom and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and INTUITIVE SURGICAL 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 INTUITIVE SURGICAL 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 INTUITIVE SURGICAL, you can compare the effects of market volatilities on CITIC Telecom and INTUITIVE SURGICAL 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 INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and INTUITIVE SURGICAL.
Diversification Opportunities for CITIC Telecom and INTUITIVE SURGICAL
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CITIC and INTUITIVE is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL 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 INTUITIVE SURGICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE SURGICAL has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between CITIC Telecom and INTUITIVE SURGICAL
Assuming the 90 days horizon CITIC Telecom International is expected to generate 2.36 times more return on investment than INTUITIVE SURGICAL. However, CITIC Telecom is 2.36 times more volatile than INTUITIVE SURGICAL. It trades about 0.07 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.07 per unit of risk. If you would invest 24.00 in CITIC Telecom International on April 23, 2025 and sell it today you would earn a total of 3.00 from holding CITIC Telecom International or generate 12.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CITIC Telecom International vs. INTUITIVE SURGICAL
Performance |
Timeline |
CITIC Telecom Intern |
INTUITIVE SURGICAL |
CITIC Telecom and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Telecom and INTUITIVE SURGICAL
The main advantage of trading using opposite CITIC Telecom and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, INTUITIVE SURGICAL 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 INTUITIVE SURGICAL will offset losses from the drop in INTUITIVE SURGICAL's long position.CITIC Telecom vs. SmarTone Telecommunications Holdings | CITIC Telecom vs. GERATHERM MEDICAL | CITIC Telecom vs. Advanced Medical Solutions | CITIC Telecom vs. Diamyd Medical AB |
INTUITIVE SURGICAL vs. Amkor Technology | INTUITIVE SURGICAL vs. PURETECH HEALTH PLC | INTUITIVE SURGICAL vs. NORDHEALTH AS NK | INTUITIVE SURGICAL vs. Firan Technology Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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