Correlation Between KORE Group and Telecom Argentina
Can any of the company-specific risk be diversified away by investing in both KORE Group and Telecom Argentina 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 Telecom Argentina 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 Telecom Argentina SA, you can compare the effects of market volatilities on KORE Group and Telecom Argentina 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 Telecom Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of KORE Group and Telecom Argentina.
Diversification Opportunities for KORE Group and Telecom Argentina
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KORE and Telecom is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding KORE Group Holdings and Telecom Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Argentina 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 Telecom Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Argentina has no effect on the direction of KORE Group i.e., KORE Group and Telecom Argentina go up and down completely randomly.
Pair Corralation between KORE Group and Telecom Argentina
Given the investment horizon of 90 days KORE Group Holdings is expected to generate 1.66 times more return on investment than Telecom Argentina. However, KORE Group is 1.66 times more volatile than Telecom Argentina SA. It trades about 0.2 of its potential returns per unit of risk. Telecom Argentina SA is currently generating about -0.1 per unit of risk. If you would invest 202.00 in KORE Group Holdings on November 18, 2024 and sell it today you would earn a total of 45.00 from holding KORE Group Holdings or generate 22.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KORE Group Holdings vs. Telecom Argentina SA
Performance |
| Timeline |
| KORE Group Holdings |
| Telecom Argentina |
KORE Group and Telecom Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KORE Group and Telecom Argentina
The main advantage of trading using opposite KORE Group and Telecom Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KORE Group position performs unexpectedly, Telecom Argentina 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 Telecom Argentina will offset losses from the drop in Telecom Argentina'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 |
| Telecom Argentina vs. Telefonica SA ADR | Telecom Argentina vs. SK Telecom Co | Telecom Argentina vs. America Movil SAB | Telecom Argentina vs. KT Corporation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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