Correlation Between MOL Nyrt and Telefonica
Can any of the company-specific risk be diversified away by investing in both MOL Nyrt and Telefonica 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 MOL Nyrt and Telefonica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Nyrt and Telefonica SA, you can compare the effects of market volatilities on MOL Nyrt and Telefonica 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 MOL Nyrt with a short position of Telefonica. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Nyrt and Telefonica.
Diversification Opportunities for MOL Nyrt and Telefonica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOL and Telefonica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MOL Nyrt and Telefonica SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telefonica SA and MOL Nyrt 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 MOL Nyrt are associated (or correlated) with Telefonica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telefonica SA has no effect on the direction of MOL Nyrt i.e., MOL Nyrt and Telefonica go up and down completely randomly.
Pair Corralation between MOL Nyrt and Telefonica
If you would invest 264,000 in MOL Nyrt on September 3, 2024 and sell it today you would earn a total of 3,800 from holding MOL Nyrt or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MOL Nyrt vs. Telefonica SA
Performance |
| Timeline |
| MOL Nyrt |
| Telefonica SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MOL Nyrt and Telefonica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Nyrt and Telefonica
The main advantage of trading using opposite MOL Nyrt and Telefonica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Nyrt position performs unexpectedly, Telefonica 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 Telefonica will offset losses from the drop in Telefonica's long position.| MOL Nyrt vs. Commerzbank AG | MOL Nyrt vs. Nutex Investments PLC | MOL Nyrt vs. NordTelekom Telecommunications Service |
| Telefonica vs. Infineon Technologies AG | Telefonica vs. Delta Technologies Nyrt | Telefonica vs. OTP Bank Nyrt | Telefonica vs. NordTelekom Telecommunications Service |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |