Correlation Between NordTelekom Telecommunicatio and 4iG Nyrt
Can any of the company-specific risk be diversified away by investing in both NordTelekom Telecommunicatio and 4iG Nyrt 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 NordTelekom Telecommunicatio and 4iG Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NordTelekom Telecommunications Service and 4iG Nyrt, you can compare the effects of market volatilities on NordTelekom Telecommunicatio and 4iG Nyrt 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 NordTelekom Telecommunicatio with a short position of 4iG Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of NordTelekom Telecommunicatio and 4iG Nyrt.
Diversification Opportunities for NordTelekom Telecommunicatio and 4iG Nyrt
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NordTelekom and 4iG is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding NordTelekom Telecommunications and 4iG Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4iG Nyrt and NordTelekom Telecommunicatio 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 NordTelekom Telecommunications Service are associated (or correlated) with 4iG Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4iG Nyrt has no effect on the direction of NordTelekom Telecommunicatio i.e., NordTelekom Telecommunicatio and 4iG Nyrt go up and down completely randomly.
Pair Corralation between NordTelekom Telecommunicatio and 4iG Nyrt
Assuming the 90 days trading horizon NordTelekom Telecommunications Service is expected to under-perform the 4iG Nyrt. In addition to that, NordTelekom Telecommunicatio is 4.09 times more volatile than 4iG Nyrt. It trades about -0.02 of its total potential returns per unit of risk. 4iG Nyrt is currently generating about 0.02 per unit of volatility. If you would invest 77,400 in 4iG Nyrt on August 27, 2024 and sell it today you would earn a total of 2,500 from holding 4iG Nyrt or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.69% |
| Values | Daily Returns |
NordTelekom Telecommunications vs. 4iG Nyrt
Performance |
| Timeline |
| NordTelekom Telecommunicatio |
| 4iG Nyrt |
NordTelekom Telecommunicatio and 4iG Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NordTelekom Telecommunicatio and 4iG Nyrt
The main advantage of trading using opposite NordTelekom Telecommunicatio and 4iG Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NordTelekom Telecommunicatio position performs unexpectedly, 4iG Nyrt 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 4iG Nyrt will offset losses from the drop in 4iG Nyrt's long position.| NordTelekom Telecommunicatio vs. OTP Bank Nyrt | NordTelekom Telecommunicatio vs. MOL Nyrt | NordTelekom Telecommunicatio vs. OPUS GLOBAL Nyrt | NordTelekom Telecommunicatio vs. ALTEO Energiaszolgaltato Nyrt |
| 4iG Nyrt vs. Nutex Investments PLC | 4iG Nyrt vs. OTP Bank Nyrt | 4iG Nyrt vs. NordTelekom Telecommunications Service | 4iG Nyrt vs. Delta Technologies Nyrt |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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