Correlation Between FC Investment and Telenor ASA
Can any of the company-specific risk be diversified away by investing in both FC Investment and Telenor ASA 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 FC Investment and Telenor ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and Telenor ASA, you can compare the effects of market volatilities on FC Investment and Telenor ASA 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 FC Investment with a short position of Telenor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and Telenor ASA.
Diversification Opportunities for FC Investment and Telenor ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FCIT and Telenor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and Telenor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telenor ASA and FC Investment 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 FC Investment Trust are associated (or correlated) with Telenor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telenor ASA has no effect on the direction of FC Investment i.e., FC Investment and Telenor ASA go up and down completely randomly.
Pair Corralation between FC Investment and Telenor ASA
Assuming the 90 days trading horizon FC Investment is expected to generate 1.14 times less return on investment than Telenor ASA. But when comparing it to its historical volatility, FC Investment Trust is 1.12 times less risky than Telenor ASA. It trades about 0.28 of its potential returns per unit of risk. Telenor ASA is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 12,940 in Telenor ASA on November 3, 2024 and sell it today you would earn a total of 840.00 from holding Telenor ASA or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FC Investment Trust vs. Telenor ASA
Performance |
| Timeline |
| FC Investment Trust |
| Telenor ASA |
FC Investment and Telenor ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FC Investment and Telenor ASA
The main advantage of trading using opposite FC Investment and Telenor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, Telenor ASA 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 Telenor ASA will offset losses from the drop in Telenor ASA's long position.| FC Investment vs. Fevertree Drinks Plc | FC Investment vs. Primary Health Properties | FC Investment vs. Naturhouse Health SA | FC Investment vs. HCA Healthcare |
| Telenor ASA vs. Abingdon Health Plc | Telenor ASA vs. Cardinal Health | Telenor ASA vs. Universal Music Group | Telenor ASA vs. Automatic Data Processing |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |