Correlation Between Ecotel Communication and TELE2 -B-
Can any of the company-specific risk be diversified away by investing in both Ecotel Communication and TELE2 -B- 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 Ecotel Communication and TELE2 -B- into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ecotel communication ag and TELE2 B , you can compare the effects of market volatilities on Ecotel Communication and TELE2 -B- 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 Ecotel Communication with a short position of TELE2 -B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecotel Communication and TELE2 -B-.
Diversification Opportunities for Ecotel Communication and TELE2 -B-
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ecotel and TELE2 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ecotel communication ag and TELE2 B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 -B- and Ecotel Communication 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 ecotel communication ag are associated (or correlated) with TELE2 -B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 -B- has no effect on the direction of Ecotel Communication i.e., Ecotel Communication and TELE2 -B- go up and down completely randomly.
Pair Corralation between Ecotel Communication and TELE2 -B-
Assuming the 90 days trading horizon ecotel communication ag is expected to under-perform the TELE2 -B-. But the stock apears to be less risky and, when comparing its historical volatility, ecotel communication ag is 3.0 times less risky than TELE2 -B-. The stock trades about -0.05 of its potential returns per unit of risk. The TELE2 B is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 303.00 in TELE2 B on December 11, 2024 and sell it today you would earn a total of 846.00 from holding TELE2 B or generate 279.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.59% |
| Values | Daily Returns |
ecotel communication ag vs. TELE2 B
Performance |
| Timeline |
| ecotel communication |
| TELE2 -B- |
Ecotel Communication and TELE2 -B- Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecotel Communication and TELE2 -B-
The main advantage of trading using opposite Ecotel Communication and TELE2 -B- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecotel Communication position performs unexpectedly, TELE2 -B- 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 TELE2 -B- will offset losses from the drop in TELE2 -B-'s long position.| Ecotel Communication vs. T Mobile | ||
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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