Correlation Between XL Axiata and Tele2 AB
Can any of the company-specific risk be diversified away by investing in both XL Axiata and Tele2 AB 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 XL Axiata and Tele2 AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XL Axiata Tbk and Tele2 AB, you can compare the effects of market volatilities on XL Axiata and Tele2 AB 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 XL Axiata with a short position of Tele2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of XL Axiata and Tele2 AB.
Diversification Opportunities for XL Axiata and Tele2 AB
Very weak diversification
The 3 months correlation between PTXKY and Tele2 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding XL Axiata Tbk and Tele2 AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tele2 AB and XL Axiata 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 XL Axiata Tbk are associated (or correlated) with Tele2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tele2 AB has no effect on the direction of XL Axiata i.e., XL Axiata and Tele2 AB go up and down completely randomly.
Pair Corralation between XL Axiata and Tele2 AB
Assuming the 90 days horizon XL Axiata is expected to generate 1.1 times less return on investment than Tele2 AB. In addition to that, XL Axiata is 2.05 times more volatile than Tele2 AB. It trades about 0.02 of its total potential returns per unit of risk. Tele2 AB is currently generating about 0.04 per unit of volatility. If you would invest 394.00 in Tele2 AB on August 27, 2024 and sell it today you would earn a total of 115.00 from holding Tele2 AB or generate 29.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XL Axiata Tbk vs. Tele2 AB
Performance |
| Timeline |
| XL Axiata Tbk |
| Tele2 AB |
XL Axiata and Tele2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XL Axiata and Tele2 AB
The main advantage of trading using opposite XL Axiata and Tele2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XL Axiata position performs unexpectedly, Tele2 AB 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 Tele2 AB will offset losses from the drop in Tele2 AB's long position.| XL Axiata vs. Vodafone Group PLC | XL Axiata vs. KDDI Corp | XL Axiata vs. Amrica Mvil, SAB | XL Axiata vs. ATT Inc |
| Tele2 AB vs. Proximus NV ADR | Tele2 AB vs. Telstra Limited | Tele2 AB vs. Singapore Telecommunications Limited | Tele2 AB vs. Vodafone Group PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |