Correlation Between HELIOS TECHS and CITIC Telecom

Can any of the company-specific risk be diversified away by investing in both HELIOS TECHS 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 HELIOS TECHS and CITIC Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HELIOS TECHS INC and CITIC Telecom International, you can compare the effects of market volatilities on HELIOS TECHS 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 HELIOS TECHS with a short position of CITIC Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of HELIOS TECHS and CITIC Telecom.

Diversification Opportunities for HELIOS TECHS and CITIC Telecom

0.66

Correlation Coefficient

HELIOS TECHS  CITIC Telecom

Poor diversification

The 3 months correlation between HELIOS and CITIC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding HELIOS TECHS 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 HELIOS TECHS 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 HELIOS TECHS 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 HELIOS TECHS i.e., HELIOS TECHS and CITIC Telecom go up and down completely randomly.

Pair Corralation between HELIOS TECHS and CITIC Telecom

Assuming the 90 days horizon HELIOS TECHS INC is expected to generate 1.16 times more return on investment than CITIC Telecom. However, HELIOS TECHS is 1.16 times more volatile than CITIC Telecom International. It trades about 0.18 of its potential returns per unit of risk. CITIC Telecom International is currently generating about 0.06 per unit of risk. If you would invest  2,853  in HELIOS TECHS INC on May 19, 2025 and sell it today you would earn a total of  1,667  from holding HELIOS TECHS INC or generate 58.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

HELIOS TECHS INC  vs.  CITIC Telecom International

HELIOS TECHS INC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HELIOS TECHS INC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, HELIOS TECHS reported solid returns over the last few months and may actually be approaching a breakup point.

CITIC Telecom Intern

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Telecom International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CITIC Telecom reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HELIOS TECHS and CITIC Telecom

The main advantage of trading using opposite HELIOS TECHS and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HELIOS TECHS 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.

The idea behind HELIOS TECHS INC and CITIC Telecom International 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.