Correlation Between Tele2 AB and Millicom International
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By analyzing existing cross correlation between Tele2 AB and Millicom International Cellular, you can compare the effects of market volatilities on Tele2 AB and Millicom International 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 Millicom International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tele2 AB and Millicom International.
Diversification Opportunities for Tele2 AB and Millicom International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tele2 and Millicom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tele2 AB and Millicom International Cellula in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millicom International 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 Millicom International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millicom International has no effect on the direction of Tele2 AB i.e., Tele2 AB and Millicom International go up and down completely randomly.
Pair Corralation between Tele2 AB and Millicom International
Assuming the 90 days trading horizon Tele2 AB is expected to generate 0.55 times more return on investment than Millicom International. However, Tele2 AB is 1.81 times less risky than Millicom International. It trades about -0.01 of its potential returns per unit of risk. Millicom International Cellular is currently generating about -0.03 per unit of risk. If you would invest 11,365 in Tele2 AB on August 28, 2024 and sell it today you would lose (40.00) from holding Tele2 AB or give up 0.35% 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. Millicom International Cellula
Performance |
| Timeline |
| Tele2 AB |
| Millicom International |
Tele2 AB and Millicom International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tele2 AB and Millicom International
The main advantage of trading using opposite Tele2 AB and Millicom International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tele2 AB position performs unexpectedly, Millicom International 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 Millicom International will offset losses from the drop in Millicom International's long position.| Tele2 AB vs. Telia Company AB | Tele2 AB vs. Skanska AB | Tele2 AB vs. AB Electrolux | Tele2 AB vs. Svenska Handelsbanken AB |
| Millicom International vs. Lidds AB | Millicom International vs. Serstech AB | Millicom International vs. Transtema Group AB | Millicom International vs. Enorama Pharma AB |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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