Correlation Between Telenor ASA and Exact Therapeutics
Can any of the company-specific risk be diversified away by investing in both Telenor ASA and Exact Therapeutics 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 Telenor ASA and Exact Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telenor ASA and Exact Therapeutics AS, you can compare the effects of market volatilities on Telenor ASA and Exact Therapeutics 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 Telenor ASA with a short position of Exact Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telenor ASA and Exact Therapeutics.
Diversification Opportunities for Telenor ASA and Exact Therapeutics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telenor and Exact is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Telenor ASA and Exact Therapeutics AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exact Therapeutics and Telenor ASA 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 Telenor ASA are associated (or correlated) with Exact Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exact Therapeutics has no effect on the direction of Telenor ASA i.e., Telenor ASA and Exact Therapeutics go up and down completely randomly.
Pair Corralation between Telenor ASA and Exact Therapeutics
Assuming the 90 days trading horizon Telenor ASA is expected to under-perform the Exact Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Telenor ASA is 2.33 times less risky than Exact Therapeutics. The stock trades about -0.15 of its potential returns per unit of risk. The Exact Therapeutics AS is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 500.00 in Exact Therapeutics AS on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Exact Therapeutics AS or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telenor ASA vs. Exact Therapeutics AS
Performance |
| Timeline |
| Telenor ASA |
| Exact Therapeutics |
Telenor ASA and Exact Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telenor ASA and Exact Therapeutics
The main advantage of trading using opposite Telenor ASA and Exact Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telenor ASA position performs unexpectedly, Exact Therapeutics 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 Exact Therapeutics will offset losses from the drop in Exact Therapeutics' long position.| Telenor ASA vs. Orkla ASA | Telenor ASA vs. DnB ASA | Telenor ASA vs. Yara International ASA | Telenor ASA vs. Storebrand ASA |
| Exact Therapeutics vs. Carasent ASA | Exact Therapeutics vs. Bergenbio ASA | Exact Therapeutics vs. Photocure | Exact Therapeutics vs. Kitron ASA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |