Correlation Between MTN Group and Koninklijke KPN
Can any of the company-specific risk be diversified away by investing in both MTN Group and Koninklijke KPN 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 MTN Group and Koninklijke KPN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MTN Group Ltd and Koninklijke KPN NV, you can compare the effects of market volatilities on MTN Group and Koninklijke KPN 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 MTN Group with a short position of Koninklijke KPN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MTN Group and Koninklijke KPN.
Diversification Opportunities for MTN Group and Koninklijke KPN
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MTN and Koninklijke is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MTN Group Ltd and Koninklijke KPN NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke KPN NV and MTN 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 MTN Group Ltd are associated (or correlated) with Koninklijke KPN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke KPN NV has no effect on the direction of MTN Group i.e., MTN Group and Koninklijke KPN go up and down completely randomly.
Pair Corralation between MTN Group and Koninklijke KPN
If you would invest 334.00 in Koninklijke KPN NV on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Koninklijke KPN NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
MTN Group Ltd vs. Koninklijke KPN NV
Performance |
| Timeline |
| MTN Group |
| Koninklijke KPN NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MTN Group and Koninklijke KPN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MTN Group and Koninklijke KPN
The main advantage of trading using opposite MTN Group and Koninklijke KPN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MTN Group position performs unexpectedly, Koninklijke KPN 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 Koninklijke KPN will offset losses from the drop in Koninklijke KPN's long position.| MTN Group vs. XL Axiata Tbk | MTN Group vs. Telenor ASA ADR | MTN Group vs. KT Corporation | MTN Group vs. Vodacom Group Ltd |
| Koninklijke KPN vs. Pegasus Tel | Koninklijke KPN vs. SwissCom AG | Koninklijke KPN vs. Hellenic Telecommunications Org | Koninklijke KPN vs. KonaTel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |