Correlation Between Orange SA and Telephone
Can any of the company-specific risk be diversified away by investing in both Orange SA and Telephone 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 Orange SA and Telephone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orange SA ADR and Telephone and Data, you can compare the effects of market volatilities on Orange SA and Telephone 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 Orange SA with a short position of Telephone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orange SA and Telephone.
Diversification Opportunities for Orange SA and Telephone
Modest diversification
The 3 months correlation between Orange and Telephone is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Orange SA ADR and Telephone and Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telephone and Data and Orange SA 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 Orange SA ADR are associated (or correlated) with Telephone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telephone and Data has no effect on the direction of Orange SA i.e., Orange SA and Telephone go up and down completely randomly.
Pair Corralation between Orange SA and Telephone
If you would invest 1,730 in Telephone and Data on November 1, 2024 and sell it today you would earn a total of 231.00 from holding Telephone and Data or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Orange SA ADR vs. Telephone and Data
Performance |
| Timeline |
| Orange SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Telephone and Data |
Orange SA and Telephone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orange SA and Telephone
The main advantage of trading using opposite Orange SA and Telephone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orange SA position performs unexpectedly, Telephone 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 Telephone will offset losses from the drop in Telephone's long position.| Orange SA vs. Telefonica Brasil SA | Orange SA vs. Vodafone Group PLC | Orange SA vs. Grupo Televisa SAB | Orange SA vs. America Movil SAB |
| Telephone vs. Telephone and Data | Telephone vs. ATT Inc | Telephone vs. Liberty Broadband Corp | Telephone vs. SiriusPoint |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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