Correlation Between Rogers Communications and Magyar Telekom
Can any of the company-specific risk be diversified away by investing in both Rogers Communications and Magyar Telekom 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 Rogers Communications and Magyar Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rogers Communications and Magyar Telekom Plc, you can compare the effects of market volatilities on Rogers Communications and Magyar Telekom 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 Rogers Communications with a short position of Magyar Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rogers Communications and Magyar Telekom.
Diversification Opportunities for Rogers Communications and Magyar Telekom
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rogers and Magyar is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Rogers Communications and Magyar Telekom Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Telekom Plc and Rogers Communications 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 Rogers Communications are associated (or correlated) with Magyar Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Telekom Plc has no effect on the direction of Rogers Communications i.e., Rogers Communications and Magyar Telekom go up and down completely randomly.
Pair Corralation between Rogers Communications and Magyar Telekom
Considering the 90-day investment horizon Rogers Communications is expected to under-perform the Magyar Telekom. But the stock apears to be less risky and, when comparing its historical volatility, Rogers Communications is 2.16 times less risky than Magyar Telekom. The stock trades about -0.13 of its potential returns per unit of risk. The Magyar Telekom Plc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,507 in Magyar Telekom Plc on September 3, 2024 and sell it today you would earn a total of 104.00 from holding Magyar Telekom Plc or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rogers Communications vs. Magyar Telekom Plc
Performance |
| Timeline |
| Rogers Communications |
| Magyar Telekom Plc |
Rogers Communications and Magyar Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rogers Communications and Magyar Telekom
The main advantage of trading using opposite Rogers Communications and Magyar Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rogers Communications position performs unexpectedly, Magyar Telekom 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 Magyar Telekom will offset losses from the drop in Magyar Telekom's long position.| Rogers Communications vs. Highway Holdings Limited | Rogers Communications vs. QCR Holdings | Rogers Communications vs. Partner Communications | Rogers Communications vs. Acumen Pharmaceuticals |
| Magyar Telekom vs. Telefonica Brasil SA | Magyar Telekom vs. Vodafone Group PLC | Magyar Telekom vs. Grupo Televisa SAB | Magyar Telekom vs. America Movil SAB |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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