Correlation Between NordTelekom Telecommunicatio and Total SA
Can any of the company-specific risk be diversified away by investing in both NordTelekom Telecommunicatio and Total SA 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 Total SA 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 Total SA, you can compare the effects of market volatilities on NordTelekom Telecommunicatio and Total SA 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 Total SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NordTelekom Telecommunicatio and Total SA.
Diversification Opportunities for NordTelekom Telecommunicatio and Total SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NordTelekom and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NordTelekom Telecommunications and Total SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total SA 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 Total SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total SA has no effect on the direction of NordTelekom Telecommunicatio i.e., NordTelekom Telecommunicatio and Total SA go up and down completely randomly.
Pair Corralation between NordTelekom Telecommunicatio and Total SA
If you would invest (100.00) in Total SA on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Total SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NordTelekom Telecommunications vs. Total SA
Performance |
| Timeline |
| NordTelekom Telecommunicatio |
| Total SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NordTelekom Telecommunicatio and Total SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NordTelekom Telecommunicatio and Total SA
The main advantage of trading using opposite NordTelekom Telecommunicatio and Total SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NordTelekom Telecommunicatio position performs unexpectedly, Total SA 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 Total SA will offset losses from the drop in Total SA'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 |
| Total SA vs. OPUS GLOBAL Nyrt | Total SA vs. OTP Bank Nyrt | Total SA vs. Infineon Technologies AG | Total SA vs. Appeninn 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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