Correlation Between COMBA TELECOM and H World

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Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and H World 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 COMBA TELECOM and H World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and H World Group, you can compare the effects of market volatilities on COMBA TELECOM and H World 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 COMBA TELECOM with a short position of H World. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and H World.

Diversification Opportunities for COMBA TELECOM and H World

0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between COMBA and CL4A is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and H World Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H World Group and COMBA 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 COMBA TELECOM SYST are associated (or correlated) with H World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H World Group has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and H World go up and down completely randomly.

Pair Corralation between COMBA TELECOM and H World

Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to generate 1.56 times more return on investment than H World. However, COMBA TELECOM is 1.56 times more volatile than H World Group. It trades about 0.24 of its potential returns per unit of risk. H World Group is currently generating about 0.15 per unit of risk. If you would invest  20.00  in COMBA TELECOM SYST on July 27, 2025 and sell it today you would earn a total of  13.00  from holding COMBA TELECOM SYST or generate 65.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

COMBA TELECOM SYST  vs.  H World Group

 Performance 
       Timeline  
COMBA TELECOM SYST 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in COMBA TELECOM SYST are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, COMBA TELECOM unveiled solid returns over the last few months and may actually be approaching a breakup point.
H World Group 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in H World Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, H World reported solid returns over the last few months and may actually be approaching a breakup point.

COMBA TELECOM and H World Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with COMBA TELECOM and H World

The main advantage of trading using opposite COMBA TELECOM and H World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, H World 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 H World will offset losses from the drop in H World's long position.
The idea behind COMBA TELECOM SYST and H World Group 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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