Correlation Between STGEORGE MINING and TELECOM ITALIA
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and TELECOM ITALIA 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 STGEORGE MINING and TELECOM ITALIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and TELECOM ITALIA, you can compare the effects of market volatilities on STGEORGE MINING and TELECOM ITALIA 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 STGEORGE MINING with a short position of TELECOM ITALIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and TELECOM ITALIA.
Diversification Opportunities for STGEORGE MINING and TELECOM ITALIA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between STGEORGE and TELECOM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and TELECOM ITALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELECOM ITALIA and STGEORGE MINING 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 STGEORGE MINING LTD are associated (or correlated) with TELECOM ITALIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELECOM ITALIA has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and TELECOM ITALIA go up and down completely randomly.
Pair Corralation between STGEORGE MINING and TELECOM ITALIA
Assuming the 90 days horizon STGEORGE MINING is expected to generate 1.01 times less return on investment than TELECOM ITALIA. In addition to that, STGEORGE MINING is 4.31 times more volatile than TELECOM ITALIA. It trades about 0.02 of its total potential returns per unit of risk. TELECOM ITALIA is currently generating about 0.07 per unit of volatility. If you would invest 24.00 in TELECOM ITALIA on December 25, 2024 and sell it today you would earn a total of 5.00 from holding TELECOM ITALIA or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. TELECOM ITALIA
Performance |
| Timeline |
| STGEORGE MINING LTD |
| TELECOM ITALIA |
STGEORGE MINING and TELECOM ITALIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and TELECOM ITALIA
The main advantage of trading using opposite STGEORGE MINING and TELECOM ITALIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, TELECOM ITALIA 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 TELECOM ITALIA will offset losses from the drop in TELECOM ITALIA's long position.| STGEORGE MINING vs. Molina Healthcare | STGEORGE MINING vs. Neinor Homes SA | STGEORGE MINING vs. EPSILON HEALTHCARE LTD | STGEORGE MINING vs. BOVIS HOMES GROUP |
| TELECOM ITALIA vs. National Health Investors | TELECOM ITALIA vs. Natural Health Trends | TELECOM ITALIA vs. Bausch Health Companies | TELECOM ITALIA vs. Universal Health Realty |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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