Correlation Between Enter Air and Deutsche Telekom
Can any of the company-specific risk be diversified away by investing in both Enter Air and Deutsche Telekom 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 Enter Air and Deutsche Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enter Air SA and Deutsche Telekom AG, you can compare the effects of market volatilities on Enter Air and Deutsche Telekom 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 Enter Air with a short position of Deutsche Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Deutsche Telekom.
Diversification Opportunities for Enter Air and Deutsche Telekom
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enter and Deutsche is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Deutsche Telekom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Telekom and Enter Air 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 Enter Air SA are associated (or correlated) with Deutsche Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Telekom has no effect on the direction of Enter Air i.e., Enter Air and Deutsche Telekom go up and down completely randomly.
Pair Corralation between Enter Air and Deutsche Telekom
Assuming the 90 days trading horizon Enter Air SA is expected to generate 7.2 times more return on investment than Deutsche Telekom. However, Enter Air is 7.2 times more volatile than Deutsche Telekom AG. It trades about 0.07 of its potential returns per unit of risk. Deutsche Telekom AG is currently generating about 0.31 per unit of risk. If you would invest 858.00 in Enter Air SA on September 1, 2024 and sell it today you would earn a total of 354.00 from holding Enter Air SA or generate 41.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enter Air SA vs. Deutsche Telekom AG
Performance |
| Timeline |
| Enter Air SA |
| Deutsche Telekom |
Enter Air and Deutsche Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enter Air and Deutsche Telekom
The main advantage of trading using opposite Enter Air and Deutsche Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Deutsche Telekom 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 Deutsche Telekom will offset losses from the drop in Deutsche Telekom's long position.| Enter Air vs. AUSNUTRIA DAIRY | Enter Air vs. NIPPON MEAT PACKERS | Enter Air vs. Lifeway Foods | Enter Air vs. TreeHouse Foods |
| Deutsche Telekom vs. COLUMBIA SPORTSWEAR | Deutsche Telekom vs. CeoTronics AG | Deutsche Telekom vs. Transportadora de Gas | Deutsche Telekom vs. PARKEN Sport Entertainment |
Check out your portfolio center.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |