Correlation Between TFS Financial and CITIC Telecom

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

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

Diversification Opportunities for TFS Financial and CITIC Telecom

0.0

Correlation Coefficient

TFS Financial  CITIC Telecom

Pay attention - limited upside

The 3 months correlation between TFS and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TFS Financial 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 TFS Financial 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 TFS Financial 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 TFS Financial i.e., TFS Financial and CITIC Telecom go up and down completely randomly.

Pair Corralation between TFS Financial and CITIC Telecom

If you would invest  1,311  in TFS Financial on September 12, 2025 and sell it today you would earn a total of  80.00  from holding TFS Financial or generate 6.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TFS Financial  vs.  CITIC Telecom International

TFS Financial

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TFS Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, TFS Financial may actually be approaching a critical reversion point that can send shares even higher in January 2026.

CITIC Telecom Intern

Risk-Adjusted Performance

Weakest

Over the last 90 days CITIC Telecom International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CITIC Telecom is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TFS Financial and CITIC Telecom

The main advantage of trading using opposite TFS Financial and CITIC Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS Financial 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 TFS Financial 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.