Correlation Between Tele2 AB and IZafe Group
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By analyzing existing cross correlation between Tele2 AB and iZafe Group AB, you can compare the effects of market volatilities on Tele2 AB and IZafe Group 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 Tele2 AB with a short position of IZafe Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and IZafe Group.
Diversification Opportunities for Tele2 AB and IZafe Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tele2 and IZafe is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and iZafe Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iZafe Group AB and Tele2 AB 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 Tele2 AB are associated (or correlated) with IZafe Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iZafe Group AB has no effect on the direction of Tele2 AB i.e., Tele2 AB and IZafe Group go up and down completely randomly.
Pair Corralation between Tele2 AB and IZafe Group
Assuming the 90 days trading horizon Tele2 AB is expected to generate 2.14 times less return on investment than IZafe Group. But when comparing it to its historical volatility, Tele2 AB is 5.4 times less risky than IZafe Group. It trades about 0.06 of its potential returns per unit of risk. iZafe Group AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 28.00 in iZafe Group AB on September 24, 2024 and sell it today you would lose (7.00) from holding iZafe Group AB or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tele2 AB vs. iZafe Group AB
Performance |
| Timeline |
| Tele2 AB |
| iZafe Group AB |
Tele2 AB and IZafe Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and IZafe Group
The main advantage of trading using opposite Tele2 AB and IZafe Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, IZafe Group 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 IZafe Group will offset losses from the drop in IZafe Group's long position.| Tele2 AB vs. Embracer Group AB | Tele2 AB vs. Samhllsbyggnadsbolaget i Norden | Tele2 AB vs. Evolution AB | Tele2 AB vs. Stillfront Group AB |
| IZafe Group vs. Skanska AB | IZafe Group vs. AB SKF | IZafe Group vs. Tele2 AB | IZafe Group vs. AB Electrolux |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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