Correlation Between CITIC Telecom and IRONVELD PLC

Can any of the company-specific risk be diversified away by investing in both CITIC Telecom and IRONVELD PLC 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 IRONVELD PLC 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 IRONVELD PLC LS, you can compare the effects of market volatilities on CITIC Telecom and IRONVELD PLC 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 IRONVELD PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Telecom and IRONVELD PLC.

Diversification Opportunities for CITIC Telecom and IRONVELD PLC

0.0

Correlation Coefficient

CITIC Telecom  IRONVELD PLC

Pay attention - limited upside

The 3 months correlation between CITIC and IRONVELD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and IRONVELD PLC LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRONVELD PLC LS 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 IRONVELD PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRONVELD PLC LS has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and IRONVELD PLC go up and down completely randomly.

Pair Corralation between CITIC Telecom and IRONVELD PLC

If you would invest  23.00  in CITIC Telecom International on April 22, 2025 and sell it today you would earn a total of  4.00  from holding CITIC Telecom International or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CITIC Telecom International  vs.  IRONVELD PLC LS

CITIC Telecom Intern

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Telecom International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CITIC Telecom reported solid returns over the last few months and may actually be approaching a breakup point.

IRONVELD PLC LS

Risk-Adjusted Performance

Very Weak

Over the last 90 days IRONVELD PLC LS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, IRONVELD PLC is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CITIC Telecom and IRONVELD PLC

The main advantage of trading using opposite CITIC Telecom and IRONVELD PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Telecom position performs unexpectedly, IRONVELD PLC 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 IRONVELD PLC will offset losses from the drop in IRONVELD PLC's long position.

The idea behind CITIC Telecom International and IRONVELD PLC LS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.