Correlation Between Magyar Telekom and QualTek Services
Can any of the company-specific risk be diversified away by investing in both Magyar Telekom and QualTek Services 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 Magyar Telekom and QualTek Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Telekom Plc and QualTek Services, you can compare the effects of market volatilities on Magyar Telekom and QualTek Services 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 Magyar Telekom with a short position of QualTek Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Telekom and QualTek Services.
Diversification Opportunities for Magyar Telekom and QualTek Services
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magyar and QualTek is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Telekom Plc and QualTek Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QualTek Services and Magyar Telekom 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 Magyar Telekom Plc are associated (or correlated) with QualTek Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QualTek Services has no effect on the direction of Magyar Telekom i.e., Magyar Telekom and QualTek Services go up and down completely randomly.
Pair Corralation between Magyar Telekom and QualTek Services
Assuming the 90 days horizon Magyar Telekom Plc is expected to generate 0.14 times more return on investment than QualTek Services. However, Magyar Telekom Plc is 7.33 times less risky than QualTek Services. It trades about 0.13 of its potential returns per unit of risk. QualTek Services is currently generating about -0.09 per unit of risk. If you would invest 446.00 in Magyar Telekom Plc on September 1, 2024 and sell it today you would earn a total of 1,128 from holding Magyar Telekom Plc or generate 252.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 24.01% |
| Values | Daily Returns |
Magyar Telekom Plc vs. QualTek Services
Performance |
| Timeline |
| Magyar Telekom Plc |
| QualTek Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magyar Telekom and QualTek Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Telekom and QualTek Services
The main advantage of trading using opposite Magyar Telekom and QualTek Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Telekom position performs unexpectedly, QualTek Services 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 QualTek Services will offset losses from the drop in QualTek Services' long position.| Magyar Telekom vs. HUMANA INC | Magyar Telekom vs. Aquagold International | Magyar Telekom vs. Barloworld Ltd ADR | Magyar Telekom vs. Thrivent High Yield |
| QualTek Services vs. KORE Group Holdings | QualTek Services vs. Consolidated Communications | QualTek Services vs. Grupo Televisa SAB | QualTek Services vs. FingerMotion |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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