Correlation Between 4iG Nyrt and NordTelekom Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both 4iG Nyrt and NordTelekom Telecommunicatio 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 4iG Nyrt and NordTelekom Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4iG Nyrt and NordTelekom Telecommunications Service, you can compare the effects of market volatilities on 4iG Nyrt and NordTelekom Telecommunicatio 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 4iG Nyrt with a short position of NordTelekom Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4iG Nyrt and NordTelekom Telecommunicatio.
Diversification Opportunities for 4iG Nyrt and NordTelekom Telecommunicatio
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 4iG and NordTelekom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding 4iG Nyrt and NordTelekom Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NordTelekom Telecommunicatio and 4iG Nyrt 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 4iG Nyrt are associated (or correlated) with NordTelekom Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NordTelekom Telecommunicatio has no effect on the direction of 4iG Nyrt i.e., 4iG Nyrt and NordTelekom Telecommunicatio go up and down completely randomly.
Pair Corralation between 4iG Nyrt and NordTelekom Telecommunicatio
Assuming the 90 days trading horizon 4iG Nyrt is expected to generate 0.25 times more return on investment than NordTelekom Telecommunicatio. However, 4iG Nyrt is 3.93 times less risky than NordTelekom Telecommunicatio. It trades about 0.0 of its potential returns per unit of risk. NordTelekom Telecommunications Service is currently generating about -0.02 per unit of risk. If you would invest 79,500 in 4iG Nyrt on September 1, 2024 and sell it today you would lose (300.00) from holding 4iG Nyrt or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.91% |
| Values | Daily Returns |
4iG Nyrt vs. NordTelekom Telecommunications
Performance |
| Timeline |
| 4iG Nyrt |
| NordTelekom Telecommunicatio |
4iG Nyrt and NordTelekom Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4iG Nyrt and NordTelekom Telecommunicatio
The main advantage of trading using opposite 4iG Nyrt and NordTelekom Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4iG Nyrt position performs unexpectedly, NordTelekom Telecommunicatio 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 NordTelekom Telecommunicatio will offset losses from the drop in NordTelekom Telecommunicatio's long position.| 4iG Nyrt vs. OTP Bank Nyrt | 4iG Nyrt vs. OPUS GLOBAL Nyrt | 4iG Nyrt vs. Raba Jarmuipari Holding | 4iG Nyrt vs. Delta Technologies Nyrt |
| NordTelekom Telecommunicatio vs. OTP Bank Nyrt | NordTelekom Telecommunicatio vs. MOL Nyrt | NordTelekom Telecommunicatio vs. OPUS GLOBAL Nyrt | NordTelekom Telecommunicatio vs. ALTEO Energiaszolgaltato Nyrt |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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