Correlation Between KORE Group and Magyar Telekom
Can any of the company-specific risk be diversified away by investing in both KORE Group and Magyar Telekom 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 KORE Group and Magyar Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KORE Group Holdings and Magyar Telekom Plc, you can compare the effects of market volatilities on KORE Group and Magyar Telekom 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 KORE Group with a short position of Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Magyar Telekom.
Diversification Opportunities for KORE Group and Magyar Telekom
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KORE and Magyar is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Magyar Telekom Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom Plc and KORE Group 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 KORE Group Holdings are associated (or correlated) with Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom Plc has no effect on the direction of KORE Group i.e., KORE Group and Magyar Telekom go up and down completely randomly.
Pair Corralation between KORE Group and Magyar Telekom
Given the investment horizon of 90 days KORE Group Holdings is expected to generate 3.16 times more return on investment than Magyar Telekom. However, KORE Group is 3.16 times more volatile than Magyar Telekom Plc. It trades about 0.09 of its potential returns per unit of risk. Magyar Telekom Plc is currently generating about 0.25 per unit of risk. If you would invest 228.00 in KORE Group Holdings on November 27, 2024 and sell it today you would earn a total of 16.00 from holding KORE Group Holdings or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORE Group Holdings vs. Magyar Telekom Plc
Performance |
| Timeline |
| KORE Group Holdings |
| Magyar Telekom Plc |
KORE Group and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Group and Magyar Telekom
The main advantage of trading using opposite KORE Group and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group position performs unexpectedly, Magyar Telekom 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 Magyar Telekom will offset losses from the drop in Magyar Telekom's long position.| KORE Group vs. Liberty Broadband Srs | KORE Group vs. Cable One | KORE Group vs. Liberty Broadband Corp | KORE Group vs. Telkom Indonesia Tbk |
| Magyar Telekom vs. SwissCom AG | Magyar Telekom vs. Hellenic Telecommunications Org | Magyar Telekom vs. Telefonica SA ADR | Magyar Telekom vs. Lumen Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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