Correlation Between Apple and Citic Telecom
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Citic Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Citic Telecom International, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Citic Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Citic Telecom.
Diversification Opportunities for Apple and Citic Telecom
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apple and Citic is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple Inc 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 Apple i.e., Apple and Citic Telecom go up and down completely randomly.
Pair Corralation between Apple and Citic Telecom
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.68 times more return on investment than Citic Telecom. However, Apple Inc is 1.48 times less risky than Citic Telecom. It trades about 0.2 of its potential returns per unit of risk. Citic Telecom International is currently generating about 0.01 per unit of risk. If you would invest 19,767 in Apple Inc on August 27, 2025 and sell it today you would earn a total of 4,098 from holding Apple Inc or generate 20.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Citic Telecom International
Performance |
| Timeline |
| Apple Inc |
| Citic Telecom Intern |
Apple and Citic Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Citic Telecom
The main advantage of trading using opposite Apple and Citic Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Harmony Gold Mining | Apple vs. COEUR MINING | Apple vs. PLAYWAY SA ZY 10 | Apple vs. Aristocrat Leisure Limited |
| Citic Telecom vs. COEUR MINING | Citic Telecom vs. Zhaojin Mining Industry | Citic Telecom vs. GREENX METALS LTD | Citic Telecom vs. SIMS METAL MGT |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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