Correlation Between COMBA TELECOM and CTS Eventim
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and CTS Eventim 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 COMBA TELECOM and CTS Eventim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and CTS Eventim AG, you can compare the effects of market volatilities on COMBA TELECOM and CTS Eventim 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 COMBA TELECOM with a short position of CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and CTS Eventim.
Diversification Opportunities for COMBA TELECOM and CTS Eventim
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between COMBA and CTS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG and COMBA TELECOM 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 COMBA TELECOM SYST are associated (or correlated) with CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and CTS Eventim go up and down completely randomly.
Pair Corralation between COMBA TELECOM and CTS Eventim
Assuming the 90 days trading horizon COMBA TELECOM is expected to generate 8.64 times less return on investment than CTS Eventim. In addition to that, COMBA TELECOM is 1.12 times more volatile than CTS Eventim AG. It trades about 0.0 of its total potential returns per unit of risk. CTS Eventim AG is currently generating about 0.04 per unit of volatility. If you would invest 6,359 in CTS Eventim AG on October 12, 2024 and sell it today you would earn a total of 2,331 from holding CTS Eventim AG or generate 36.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. CTS Eventim AG
Performance |
| Timeline |
| COMBA TELECOM SYST |
| CTS Eventim AG |
COMBA TELECOM and CTS Eventim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and CTS Eventim
The main advantage of trading using opposite COMBA TELECOM and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's long position.| COMBA TELECOM vs. Gold Road Resources | COMBA TELECOM vs. Clean Energy Fuels | COMBA TELECOM vs. CLEAN ENERGY FUELS | COMBA TELECOM vs. Liberty Broadband |
| CTS Eventim vs. COMBA TELECOM SYST | CTS Eventim vs. TELECOM ITALIA | CTS Eventim vs. BII Railway Transportation | CTS Eventim vs. Transport International Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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