Correlation Between Technos SA and Teladoc Health
Can any of the company-specific risk be diversified away by investing in both Technos SA and Teladoc Health 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 Technos SA and Teladoc Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technos SA and Teladoc Health, you can compare the effects of market volatilities on Technos SA and Teladoc Health 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 Technos SA with a short position of Teladoc Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technos SA and Teladoc Health.
Diversification Opportunities for Technos SA and Teladoc Health
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Technos and Teladoc is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Technos SA and Teladoc Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc Health and Technos 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 Technos SA are associated (or correlated) with Teladoc Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc Health has no effect on the direction of Technos SA i.e., Technos SA and Teladoc Health go up and down completely randomly.
Pair Corralation between Technos SA and Teladoc Health
Assuming the 90 days trading horizon Technos SA is expected to generate 3.56 times less return on investment than Teladoc Health. But when comparing it to its historical volatility, Technos SA is 1.42 times less risky than Teladoc Health. It trades about 0.1 of its potential returns per unit of risk. Teladoc Health is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Teladoc Health on September 5, 2024 and sell it today you would earn a total of 52.00 from holding Teladoc Health or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technos SA vs. Teladoc Health
Performance |
| Timeline |
| Technos SA |
| Teladoc Health |
Technos SA and Teladoc Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technos SA and Teladoc Health
The main advantage of trading using opposite Technos SA and Teladoc Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technos SA position performs unexpectedly, Teladoc Health 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 Teladoc Health will offset losses from the drop in Teladoc Health's long position.| Technos SA vs. Take Two Interactive Software | Technos SA vs. Costco Wholesale | Technos SA vs. Align Technology | Technos SA vs. GP Investments |
| Teladoc Health vs. United Airlines Holdings | Teladoc Health vs. Technos SA | Teladoc Health vs. Marvell Technology | Teladoc Health vs. salesforce inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |