Correlation Between WT OFFSHORE and CITIC Telecom
Can any of the company-specific risk be diversified away by investing in both WT OFFSHORE 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 WT OFFSHORE and CITIC Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WT OFFSHORE and CITIC Telecom International, you can compare the effects of market volatilities on WT OFFSHORE 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 WT OFFSHORE with a short position of CITIC Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of WT OFFSHORE and CITIC Telecom.
Diversification Opportunities for WT OFFSHORE and CITIC Telecom
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between UWV and CITIC is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE 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 WT OFFSHORE i.e., WT OFFSHORE and CITIC Telecom go up and down completely randomly.
Pair Corralation between WT OFFSHORE and CITIC Telecom
Assuming the 90 days trading horizon WT OFFSHORE is expected to generate 1.09 times more return on investment than CITIC Telecom. However, WT OFFSHORE is 1.09 times more volatile than CITIC Telecom International. It trades about 0.1 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 139.00 in WT OFFSHORE on July 21, 2025 and sell it today you would earn a total of 38.00 from holding WT OFFSHORE or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WT OFFSHORE vs. CITIC Telecom International
Performance |
| Timeline |
| WT OFFSHORE |
| CITIC Telecom Intern |
WT OFFSHORE and CITIC Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WT OFFSHORE and CITIC Telecom
The main advantage of trading using opposite WT OFFSHORE and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WT OFFSHORE 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.| WT OFFSHORE vs. Apple Inc | WT OFFSHORE vs. Apple Inc | WT OFFSHORE vs. Apple Inc | WT OFFSHORE vs. Apple Inc |
| CITIC Telecom vs. Chesapeake Utilities | CITIC Telecom vs. Solstad Offshore ASA | CITIC Telecom vs. WT OFFSHORE | CITIC Telecom vs. Eidesvik Offshore ASA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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