Correlation Between COMBA TELECOM and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and NESTE OYJ 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 NESTE OYJ 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 NESTE OYJ UNSPADR, you can compare the effects of market volatilities on COMBA TELECOM and NESTE OYJ 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 NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and NESTE OYJ.
Diversification Opportunities for COMBA TELECOM and NESTE OYJ
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMBA and NESTE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR 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 NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and NESTE OYJ go up and down completely randomly.
Pair Corralation between COMBA TELECOM and NESTE OYJ
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to generate 0.93 times more return on investment than NESTE OYJ. However, COMBA TELECOM SYST is 1.07 times less risky than NESTE OYJ. It trades about 0.01 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.13 per unit of risk. If you would invest 13.00 in COMBA TELECOM SYST on October 20, 2024 and sell it today you would earn a total of 0.00 from holding COMBA TELECOM SYST or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| COMBA TELECOM SYST |
| NESTE OYJ UNSPADR |
COMBA TELECOM and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and NESTE OYJ
The main advantage of trading using opposite COMBA TELECOM and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, NESTE OYJ 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| COMBA TELECOM vs. The Boston Beer | COMBA TELECOM vs. THAI BEVERAGE | COMBA TELECOM vs. PPHE HOTEL GROUP | COMBA TELECOM vs. Playa Hotels Resorts |
| NESTE OYJ vs. COMBA TELECOM SYST | NESTE OYJ vs. Shenandoah Telecommunications | NESTE OYJ vs. Chengdu PUTIAN Telecommunications | NESTE OYJ vs. TIANDE CHEMICAL |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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