Correlation Between VEON and CITIC

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

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

Diversification Opportunities for VEON and CITIC

0.01

Correlation Coefficient

VEON  CITIC

Significant diversification

The 3 months correlation between VEON and CITIC is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding VEON and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited and VEON 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 VEON 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 VEON i.e., VEON and CITIC go up and down completely randomly.

Pair Corralation between VEON and CITIC

Given the investment horizon of 90 days VEON is expected to under-perform the CITIC. But the stock apears to be less risky and, when comparing its historical volatility, VEON is 1.0 times less risky than CITIC. The stock trades about -0.03 of its potential returns per unit of risk. The CITIC Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  138.00  in CITIC Limited on July 29, 2025 and sell it today you would earn a total of  2.00  from holding CITIC Limited or generate 1.45% return on investment over 90 days.

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

VEON  vs.  CITIC Limited

VEON

Risk-Adjusted Performance

Weakest

Over the last 90 days VEON has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

CITIC Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, CITIC is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with VEON and CITIC

The main advantage of trading using opposite VEON and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEON 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 VEON 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.