Correlation Between TravelSky Technology and CITIC

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

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

Diversification Opportunities for TravelSky Technology and CITIC

0.1

Correlation Coefficient

TravelSky Technology  CITIC

Average diversification

The 3 months correlation between TravelSky and CITIC is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TravelSky Technology Limited and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited and TravelSky Technology 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 TravelSky Technology Limited are associated (or correlated) with CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Limited has no effect on the direction of TravelSky Technology i.e., TravelSky Technology and CITIC go up and down completely randomly.

Pair Corralation between TravelSky Technology and CITIC

Assuming the 90 days horizon TravelSky Technology Limited is expected to generate 2.05 times more return on investment than CITIC. However, TravelSky Technology is 2.05 times more volatile than CITIC Limited. It trades about 0.08 of its potential returns per unit of risk. CITIC Limited is currently generating about 0.07 per unit of risk. If you would invest  137.00  in TravelSky Technology Limited on May 5, 2025 and sell it today you would earn a total of  21.00  from holding TravelSky Technology Limited or generate 15.33% return on investment over 90 days.

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

TravelSky Technology Limited  vs.  CITIC Limited

TravelSky Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TravelSky Technology Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, TravelSky Technology reported solid returns over the last few months and may actually be approaching a breakup point.

CITIC Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, CITIC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with TravelSky Technology and CITIC

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

The idea behind TravelSky Technology Limited and CITIC Limited 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..