Correlation Between Telefonica and ALTEO Energiaszolgalta
Can any of the company-specific risk be diversified away by investing in both Telefonica and ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telefonica SA and ALTEO Energiaszolgaltato Nyrt, you can compare the effects of market volatilities on Telefonica and ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telefonica and ALTEO Energiaszolgalta.
Diversification Opportunities for Telefonica and ALTEO Energiaszolgalta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telefonica and ALTEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telefonica SA and ALTEO Energiaszolgaltato Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTEO Energiaszolgalta has no effect on the direction of Telefonica i.e., Telefonica and ALTEO Energiaszolgalta go up and down completely randomly.
Pair Corralation between Telefonica and ALTEO Energiaszolgalta
If you would invest (100.00) in Telefonica SA on August 30, 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. ALTEO Energiaszolgaltato Nyrt
Performance |
| Timeline |
| Telefonica SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ALTEO Energiaszolgalta |
Telefonica and ALTEO Energiaszolgalta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telefonica and ALTEO Energiaszolgalta
The main advantage of trading using opposite Telefonica and ALTEO Energiaszolgalta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telefonica position performs unexpectedly, ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta will offset losses from the drop in ALTEO Energiaszolgalta's long position.| Telefonica vs. OTP Bank Nyrt | Telefonica vs. Delta Technologies Nyrt | Telefonica vs. Nutex Investments PLC | Telefonica vs. Commerzbank AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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