Correlation Between Citic Telecom and WisdomTree Investments
Can any of the company-specific risk be diversified away by investing in both Citic Telecom and WisdomTree Investments 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 WisdomTree Investments 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 WisdomTree Investments, you can compare the effects of market volatilities on Citic Telecom and WisdomTree Investments 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 WisdomTree Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Telecom and WisdomTree Investments.
Diversification Opportunities for Citic Telecom and WisdomTree Investments
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and WisdomTree is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citic Telecom International and WisdomTree Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Investments 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 WisdomTree Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Investments has no effect on the direction of Citic Telecom i.e., Citic Telecom and WisdomTree Investments go up and down completely randomly.
Pair Corralation between Citic Telecom and WisdomTree Investments
Assuming the 90 days trading horizon Citic Telecom is expected to generate 2.3 times less return on investment than WisdomTree Investments. In addition to that, Citic Telecom is 1.12 times more volatile than WisdomTree Investments. It trades about 0.13 of its total potential returns per unit of risk. WisdomTree Investments is currently generating about 0.34 per unit of volatility. If you would invest 693.00 in WisdomTree Investments on April 22, 2025 and sell it today you would earn a total of 431.00 from holding WisdomTree Investments or generate 62.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Citic Telecom International vs. WisdomTree Investments
Performance |
Timeline |
Citic Telecom Intern |
WisdomTree Investments |
Citic Telecom and WisdomTree Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citic Telecom and WisdomTree Investments
The main advantage of trading using opposite Citic Telecom and WisdomTree Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Telecom position performs unexpectedly, WisdomTree Investments 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 WisdomTree Investments will offset losses from the drop in WisdomTree Investments' long position.Citic Telecom vs. ARDAGH METAL PACDL 0001 | Citic Telecom vs. Broadridge Financial Solutions | Citic Telecom vs. AIR PRODCHEMICALS | Citic Telecom vs. Broadwind |
WisdomTree Investments vs. Cognizant Technology Solutions | WisdomTree Investments vs. SMA Solar Technology | WisdomTree Investments vs. Japan Tobacco | WisdomTree Investments vs. CARSALESCOM |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |