Correlation Between CITIC Telecom and BE Semiconductor

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

Diversification Opportunities for CITIC Telecom and BE Semiconductor

0.0

Correlation Coefficient

CITIC Telecom  BE Semiconductor

Pay attention - limited upside

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

Pair Corralation between CITIC Telecom and BE Semiconductor

If you would invest  12,866  in BE Semiconductor Industries on September 13, 2025 and sell it today you would earn a total of  4,200  from holding BE Semiconductor Industries or generate 32.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CITIC Telecom International  vs.  BE Semiconductor Industries

CITIC Telecom Intern

Risk-Adjusted Performance

Weakest

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

BE Semiconductor Ind

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BE Semiconductor Industries are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BE Semiconductor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIC Telecom and BE Semiconductor

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

The idea behind CITIC Telecom International and BE Semiconductor Industries 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.