Correlation Between Telefonica and AKKO Invest
Can any of the company-specific risk be diversified away by investing in both Telefonica and AKKO Invest 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 Telefonica and AKKO Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telefonica SA and AKKO Invest Nyrt, you can compare the effects of market volatilities on Telefonica and AKKO Invest 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 Telefonica with a short position of AKKO Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telefonica and AKKO Invest.
Diversification Opportunities for Telefonica and AKKO Invest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telefonica and AKKO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica SA and AKKO Invest Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKKO Invest Nyrt and Telefonica 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 Telefonica SA are associated (or correlated) with AKKO Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKKO Invest Nyrt has no effect on the direction of Telefonica i.e., Telefonica and AKKO Invest go up and down completely randomly.
Pair Corralation between Telefonica and AKKO Invest
If you would invest (100.00) in Telefonica SA on September 18, 2024 and sell it today you would earn a total of 100.00 from holding Telefonica SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Telefonica SA vs. AKKO Invest Nyrt
Performance |
| Timeline |
| Telefonica SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AKKO Invest Nyrt |
Telefonica and AKKO Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telefonica and AKKO Invest
The main advantage of trading using opposite Telefonica and AKKO Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telefonica position performs unexpectedly, AKKO Invest 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 AKKO Invest will offset losses from the drop in AKKO Invest's long position.| Telefonica vs. Delta Technologies Nyrt | Telefonica vs. Deutsche Bank AG | Telefonica vs. NordTelekom Telecommunications Service |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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