Correlation Between CITIC Telecom and WOLTERS KLUWER

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

Diversification Opportunities for CITIC Telecom and WOLTERS KLUWER

-0.57

Correlation Coefficient

CITIC Telecom  WOLTERS KLUWER

Excellent diversification

The 3 months correlation between CITIC and WOLTERS is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Telecom International and WOLTERS KLUWER ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOLTERS KLUWER ADR 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 WOLTERS KLUWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOLTERS KLUWER ADR has no effect on the direction of CITIC Telecom i.e., CITIC Telecom and WOLTERS KLUWER go up and down completely randomly.

Pair Corralation between CITIC Telecom and WOLTERS KLUWER

Assuming the 90 days horizon CITIC Telecom International is expected to generate 2.38 times more return on investment than WOLTERS KLUWER. However, CITIC Telecom is 2.38 times more volatile than WOLTERS KLUWER ADR. It trades about 0.03 of its potential returns per unit of risk. WOLTERS KLUWER ADR is currently generating about -0.32 per unit of risk. If you would invest  27.00  in CITIC Telecom International on May 20, 2025 and sell it today you would earn a total of  1.00  from holding CITIC Telecom International or generate 3.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CITIC Telecom International  vs.  WOLTERS KLUWER ADR

CITIC Telecom Intern

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Telecom International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CITIC Telecom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

WOLTERS KLUWER ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days WOLTERS KLUWER ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CITIC Telecom and WOLTERS KLUWER

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

The idea behind CITIC Telecom International and WOLTERS KLUWER ADR 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.